Shares of Cava Group (CAVA -7.77%) stock dropped 30% in February, according to data provided by S&P Global Market Intelligence. There was negative investor sentiment about economic policy, and the market was underwhelmed by management's 2025 guidance.
It's not common to see a restaurant chain perform double-digit same-store restaurant sales growth, also referred to as year-over-year (YoY) comparable (comp) sales growth, these days.
While the investor reaction to Cava Group's (CAVA 5.50%) fourth-quarter earnings report was relatively muted, the fast-casual Mediterranean-themed restaurant operator continues to put up some of the most impressive results in the restaurant space. The stock has pulled back more than 10% in 2025, although it is still up more than 90% over the past year.
Cava (CAVA 5.50%) has been one of the most impressive stories in the restaurant industry lately.
CAVA benefits from strong positioning in the growing Mediterranean dining space. The company's ability to innovate with menu offerings, expand into new markets and leverage technology for operational efficiency bodes well.
Cava just reported strong fourth-quarter results, with 21% same-store growth and 36% revenue growth, putting it in a league of its own in terms of growth among its peers. Still, results were mixed, as margins were lower than expected, leading to a miss of EPS estimates. After surging to unprecedented overvaluation territory on extraordinary momentum in 2024, Cava took a breather, now trading 35% below its peak.
CAVA fell slightly after reporting very strong Q4 results, capping off a 30%+ correction from recent peaks. I'm upgrading the stock to a buy rating. The company's same-restaurant sales growth accelerated to an incredible 21% y/y in Q4, while many of its peers are struggling to maintain growth in the mid single digits. Despite competition and macro challenges, CAVA's aggressive expansion plans and improved unit economics position it well for future growth.
Cava Group (CAVA -4.72%), a fast-casual Mediterranean restaurant chain, announced its Q4 2024 earnings on February 25, 2025. The company reported strong revenue growth, rising 28.3% to $225.1 million from $177.2 million in the previous year, driven by a 21.2% increase in same restaurant sales growth.
Cava co-founder and CEO Brett Schulman joins 'Squawk Box' to discuss the company's quarterly earnings results, 2025 outlook, potential impact of tariffs, and more.
CAVA Group, Inc. (CAVA) Q4 2024 Earnings Call Transcript
While the top- and bottom-line numbers for Cava (CAVA) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Cava Group (CAVA) came out with quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.02 per share a year ago.