Stifel maintains Buy on CAVA stock, reiterates $175 target

On Friday, Stifel analysts reiterated their Buy rating on CAVA Group Inc (NYSE:CAVA) with a steady price target of $175.00. The company, currently valued at $11.45 billion, has recently reported a 10.8% increase in comparable store sales, surpassing both Stifel’s and the Street’s expectations of 10.0%. The strong performance aligns with CAVA’s impressive 32.25% revenue growth over the last twelve months. Additionally, CAVA’s adjusted EBITDA exceeded the mean estimate, reaching $44.9 million compared to Stifel’s forecast of $44.1 million and the Street’s $43.5 million.According to InvestingPro analysis, CAVA maintains a GOOD overall financial health score, with 16+ additional exclusive insights available to subscribers.

CAVA Group Inc. has confirmed its full-year comparable sales guidance, projecting an increase of 6-8%. Furthermore, the company has uplifted its guidance for net unit growth and EBITDA for the year. With a strong current ratio of 2.97 and moderate debt levels, CAVA appears well-positioned to fund its growth initiatives. Stifel analysts noted the absence of any signs of reduced consumer spending, which bolsters confidence in the company’s financial outlook.

The analysts pointed out that despite the adverse weather impacts on first-quarter trends, CAVA’s full-year comparable sales guidance appears achievable. They credit this to a series of initiatives poised to bolster comparable sales momentum throughout the year, including the introduction of a new protein in the fall season.

CAVA’s recent new unit openings have shown strong performance, indicating a rise in brand recognition and consumer engagement. These factors contribute to Stifel’s continued endorsement of their Buy rating and the affirmation of their 12-month price target of $175 for CAVA stock. The firm’s analysts believe that the company’s strategic initiatives and robust new unit performance will drive further growth and sustain the positive trajectory.

In other recent news, CAVA Group Inc. reported impressive first-quarter results for 2025, significantly surpassing earnings expectations. The company reported an earnings per share (EPS) of $0.22, well above the forecasted $0.02, and revenue reached $331.83 million, exceeding the projected $280.93 million. This performance marks a notable achievement in the fast casual dining sector, where many competitors have faced challenges. CAVA’s guidance for 2025 maintains a positive outlook, with expected comparable store sales growth of 6-8% and EBITDA reaching the high end of analyst expectations.

Citi analyst Jon Tower recently raised the price target for CAVA Group to $115, maintaining a neutral rating. This adjustment reflects the company’s strong financial results and guidance, although Tower notes that financial estimates have not increased significantly. Despite the strong earnings report, CAVA’s stock experienced a decline in after-hours trading. The company continues to expand its footprint, opening 15 new restaurants and entering new markets in Indiana and Miami.

CAVA’s strategic plans include opening 64-68 new restaurants this year and aiming for 1,000 locations by 2032. The company is also focused on enhancing its loyalty program, which is approaching 8 million members, and plans to introduce a tiered structure later in the year. These recent developments indicate CAVA’s ongoing efforts to strengthen its market position and drive long-term growth.

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