The current excitement around Cava is reminiscent of Chipotle's early days as the fast-casual pioneer. Management is focused on rapidly expanding the store count, which should boost sales and profitability in the long run.
CAVA Group (NASDAQ: CAVA) stock price has surged to a record high as investors compare it with Chipotle Mexican Grill (NYSE: CMG). It soared to a high of $82.82, which was 182% above its lowest level in 2023.
We have narrowed our search to five restaurant stocks that have strong growth potential for 2024. These stocks are: WING, CAVA, EAT, STKS, TXRH.
If you were an early investor in Chipotle Mexican Grill Inc. NYSE: CMG when it went public in January 2006 at just $22 a share, you'd be sitting pretty as it trades around $3,213. It's too easy (and painful) to look back and question why you "shoulda, woulda, coulda" bought shares before the meteoric rise when they were cheap.
Cava is a fast-casual restaurant serving Mediterranean food. The company thinks it can reach 1,000 units across the United States.
Here is how Cava Group (CAVA) and Sprouts Farmers (SFM) have performed compared to their sector so far this year.