Bernstein starts Cava with Market Perform, says may be ‘next big thing’

Bernstein initiated coverage of Cava Group (CAVA) with a Market Perform rating and $145 price target The analyst believes Cava has the potential to be the “next big thing” in the restaurant industry, having showed ability to grow same-store-sales by 25% over the past three years, while doubling its number of stores and demonstrating the portability of the concept by expanding the geographic footprint. Cava “is clearly demonstrating its right to win,” the analyst tells investors in a research note. Bernstein thinks Cava can continue to grow same-store-sales in the 7%-8% range. It cites valuation for the Market Perform rating, saying the company is a “fast casual Mediterranean jewel, priced as a diamond.”