CAVA Group, Inc. (NYSE:CAVA) stock is down 2.68% over the past three months. Here’s what you need to know.
What To Know: In May, the company reported earnings for the first-quarter. Cava reported adjusted earnings per share of 22 cents, beating the consensus estimate of 14 cents. In addition, the company reported sales of $331.83 million, beating the consensus estimate of $326.88 million, and representing a 28.2% year-over-year climb.
The company reported same restaurant sales growth of 10.8% and traffic growth of 7.5%. Cava opened 15 new restaurants during the quarter, bringing its total to 382, an 18.3% year-over-year increase.
Cava also updated its fiscal-year guidance, now expecting 64 to 68 new restaurant openings and same-restaurant sales growth of 6% to 8%. Additionally, the company raised its pre-opening cost outlook to $14.5 million to $15.5 million, which may have weighed on the stock as it cuts into profit.
Following the earnings report, multiple analysts issued price target adjustments.
- TD Securities analyst Andrew Charles reiterated a Buy rating on Cava and maintained a $120 price target.
- Baird analyst David Tarantino maintained an Outperform rating on Cava and raised the price target from $105 to $115.
- Citigroup analyst Jon Tower maintained a Neutral rating on Cava and raised the price target from $114 to $115.
More recently, analysts from Stifel and JP Morgan announced price target changes.
- Stifel analyst Chris O’Cull maintained a Buy rating on Cava and lowered the price target from $175 to $125.
- JP Morgan analyst John Ivankoe maintained an Overweight rating on Cava and lowered the price target from $115 to $95.
The consensus price target for Cava is $116.53, with the lowest price target at $48 and the highest price target at $150.
Recent price target downgrades may have added to the stock’s selling pressure.
CAVA Price Action: At the time of writing, Cava shares are trading 8.42% higher at $84.45, according to data from Benzinga Pro.
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