CAVA Stock Forecast & Price Target

Cava Group Inc. exhibits strong growth potential, demonstrated by a notable two-year same-store sales trend of approximately 20%, with traffic increasing around 13%, which significantly outperforms the industry. The company is set to achieve full-year same-store sales growth of 4-6% and demonstrates an ambitious plan to expand to over 1,000 locations by the end of 2032, fueled by strong new store economics and consumer demand. Cava's impressive average unit volumes for new stores, currently exceeding $3 million, coupled with a healthy strategic positioning and operational efficiency, further substantiate a positive outlook for its market performance.

Cava Group Inc. reported EBITDA of $40.0 million, which aligned closely with estimates; however, the company's performance was negatively impacted by lower same-store sales and restaurant-level margins, compounded by higher pre-opening costs. The company revised its fiscal year 2026 same-store sales guidance down to a range of 3.0% to 4.0%, indicating weaker growth expectations compared to prior projections, and suggesting a disappointing fourth quarter ahead. Additionally, the second quarter's same-store sales growth of 2.1% fell significantly short of consensus estimates, highlighting ongoing challenges in attracting consumer demand.