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    Analyst Optimism Amid Margin Pressure and Slower Sales Might Change The Case For Investing In CAVA Group (CAVA)

    Simply Wall St·12/14/2025 22:21:15
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    • CAVA Group recently reported slower same-store sales growth and margin pressure amid higher input and labor costs, even as it continued to open new restaurants and push toward a long-term goal of 1,000 locations.
    • Despite these mixed results, a cluster of bullish analyst views has emphasized strong unit-level economics, menu innovation, and management investment as reasons to remain confident in the company’s expansion plans.
    • We’ll now examine how renewed analyst optimism, despite margin pressure and softer comps, influences CAVA’s existing investment narrative and risk profile.

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    CAVA Group Investment Narrative Recap

    To own CAVA, you have to believe its Mediterranean fast casual concept can scale profitably even as the company pushes toward 1,000 locations. The latest slowdown in same store sales and margin pressure makes near term profitability the key catalyst to watch and heightens the existing risk that rapid expansion could dilute returns, but it does not fundamentally change the long term growth story analysts are focused on.

    Stifel’s reiterated Buy rating and focus on 2026 sales drivers, such as menu innovation and strong average unit volumes, is especially relevant here, because it directly addresses concerns about softer comps and near term margin compression while reinforcing the expansion led growth thesis many analysts are leaning on.

    Yet beneath the upbeat analyst commentary, investors should be aware of how aggressive expansion to 1,000 locations could...

    Read the full narrative on CAVA Group (it's free!)

    CAVA Group's narrative projects $1.9 billion revenue and $126.2 million earnings by 2028. This requires 20.4% yearly revenue growth and a $14.5 million earnings decrease from $140.7 million today.

    Uncover how CAVA Group's forecasts yield a $67.89 fair value, a 28% upside to its current price.

    Exploring Other Perspectives

    CAVA 1-Year Stock Price Chart
    CAVA 1-Year Stock Price Chart

    Eleven members of the Simply Wall St Community currently peg CAVA’s fair value between US$38.17 and US$115.63, reflecting very different expectations. Before you anchor on any one view, consider how slower same store sales growth and rising input and labor costs could affect the returns on that planned restaurant build out.

    Explore 11 other fair value estimates on CAVA Group - why the stock might be worth over 2x more than the current price!

    Build Your Own CAVA Group Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.