CAVA Group Analysts Boost Their Forecasts After Upbeat Earnings

CAVA Group, Inc. CAVA reported better-than-expected first-quarter earnings and increased FY24 guidance on Tuesday.

Cava's first-quarter revenue increased 30.3% year-over-year to $256.3 million, which beat the consensus estimate of $245.935 million, according to Benzinga Pro. The Mediterranean fast-casual restaurant chain company reported quarterly earnings of 12 cents per share, which beat analyst estimates of 5 cents per share.

"CAVA's results in the first quarter demonstrate the strength of our category-defining brand, our clear leadership position in Mediterranean and our compelling differentiated value proposition," said Brett Schulman, co-founder and CEO of Cava Group.

Cava said it sees full-year same-restaurant sales growth to be between 4.5% and 6.5%, up from a prior range of 3% to 5%. Full-year adjusted EBITDA is expected to be between $100 million and $105 million, up from a prior range of $86 million to $92 million. Cava noted it expects to open between 50 and 54 new restaurants throughout 2024.

CAVA shares fell 0.6% to close at $82.40 on Tuesday.

These analysts made changes to their price targets on CAVA after the company reported quarterly results.

• TD Cowen boosted the price target on CAVA from $73 to $90. TD Cowen analyst Andrew Charles maintained a Buy rating.
• Wedbush increased CAVA price target from $74 to $90. Wedbush analyst Nick Setyan maintained an Outperform rating.
• Baird increased the price target on CAVA from $90 to $92. Baird analyst David Tarantino maintained an Outperform rating.
• Morgan Stanley boosted the price target on CAVA from $68 to $85. Morgan Stanley analyst Brian Harbour maintained an Overweight rating.

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