CAVA Stock Forecast & Price Target

Cava Group Inc. is demonstrating robust performance indicators, including anticipated same-store sales (SSS) growth of 4-6% and a positive trend in SSS of approximately 3% for the third quarter, suggesting a recovery trajectory. Furthermore, the company boasts best-in-class new unit returns, with annualized average unit volumes (AUV) for Year 1 exceeding $3 million, significantly above previous forecasts. Additionally, the company maintains a strong growth strategy with ambitions to expand to over 1,000 stores by the end of 2032, supported by its unique market position and increasing profitability that warrants a premium valuation.

Cava Group Inc. has lowered its 2025 revenue guidance to 4%-6%, down from an initial expectation of 6%-8%, highlighting challenges due to increasingly difficult year-over-year comparisons and an uncertain macroeconomic environment. The second quarter results for 2025 revealed same-store sales (SSS) growth of only 2.1%, significantly below the consensus estimate of 6.3% and what is anticipated by buy-side analysts in the 4-5% range. Despite strong profitability with restaurant margins of 26.3% outperforming forecasts and lower-than-expected general and administrative expenses, the underwhelming SSS results cast a negative outlook on the company's growth prospects.