William Blair analyst Sharon Zackfia has reiterated their bullish stance on CAVA stock, giving a Buy rating yesterday.
Sharon Zackfia has given her Buy rating due to a combination of factors reflecting CAVA Group, Inc.’s strong performance and growth potential. The company exceeded expectations in the fourth quarter, with a notable 21.2% increase in comparable sales, surpassing the anticipated high-teens growth. This growth was primarily driven by a significant rise in transactions, marking the fifth consecutive quarter of accelerating traffic growth.
Additionally, CAVA’s adjusted EBITDA saw a substantial 60% increase, and the company experienced broad-based momentum across various regions and formats. The brand’s rising awareness, innovative menu offerings, and a revamped loyalty program contributed to this success. Furthermore, the company’s expansion efforts, with a 19% increase in CAVA units and accelerating new unit volumes, led to a total sales growth of 28%, outperforming both internal and consensus estimates.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $130.00 price target.
Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CAVA in relation to earlier this year.