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Fresh analyst attention on CAVA Group (CAVA), including new coverage that highlights a broadly positive stance, has pushed the stock back into focus for investors weighing growth potential against valuation and execution risks.
See our latest analysis for CAVA Group.
The recent wave of upbeat analyst coverage arrives after a mixed stretch for investors, with a 32.71% 90 day share price return and a 1 year total shareholder return decline of 54.53%, suggesting short term momentum has picked up even as longer term holders remain under pressure at a last close of US$64.55.
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With revenue at US$1,132.07m, net income of US$137.44m and the stock trading around US$64.55, investors are asking a simple question: is CAVA still expensive or is the market underestimating its future growth?
With CAVA Group’s fair value estimate at $71.20 versus a last close of $64.55, the most followed narrative sees some upside still on the table.
Rapid geographic expansion into new and underserved markets, supported by strong new unit performance and a robust target of at least 1,000 restaurants by 2032, is likely to accelerate systemwide sales and drive higher topline revenue growth.
Curious what kind of revenue ramp, profit margins and valuation multiple are baked into that view? The narrative leans on strong growth assumptions and a future earnings multiple that is far from conservative.
At the core, this popular framework applies an 8.40% discount rate and assumes CAVA grows into a much larger business, with earnings power that still commands a premium P/E multiple years from now despite pressure on margins.
It also reflects updated thinking from analysts who recently nudged fair value from about $69.63 to $71.20, and slightly increased the future P/E applied to those projected earnings, even as they kept revenue growth and profit margin assumptions broadly steady.
For you, the key question is whether those inputs feel realistic, given CAVA’s current net income of $137.44m, revenue of $1,132.07m and a share price that already embeds high expectations for execution on its restaurant roll out, menu expansion and digital initiatives.
