Can CAVA maintain its EPS momentum in 2025?

CAVA's EPS momentum in 2025 is likely to be maintained, considering the following points:

1. Consistent Growth Trajectory: CAVA has demonstrated a strong growth trajectory in recent years. For instance, the company's revenue jumped from $196.8 million in Q1 2023 to $256.3 million in Q1 2024, marking a 30.3% increase. This consistent growth suggests that CAVA has a robust business model and market positioning.

1/4

CAVA Diluted EPS YoY, Diluted EPS

2. Strategic Initiatives: CAVA has been actively pursuing strategic initiatives that are expected to drive further growth. The company plans to open between 54 to 57 new restaurants by the end of 2024, which is likely to contribute to increased revenue and EPS in the coming year.
3. Financial Performance: CAVA's financial performance in 2024 has been impressive, with a reported revenue of $231.4 million for Q2 2024, driven by a 14.4% rise in same-restaurant sales and the opening of 18 new restaurants. This performance indicates a strong operational efficiency and market demand for CAVA's products.
4. Analyst Optimism: Analysts have reaffirmed their Buy ratings on CAVA stock, citing strong Q4 sales and the company's potential to exceed its 2025 same-store sales guidance. This optimism is supported by CAVA's customer traffic growth and innovative menu items that are driving sales.
5. Market Positioning: CAVA's unique market niche in the Mediterranean cuisine segment and its ability to fill a gap in the food delivery space are likely to contribute to its continued growth and profitability.

In conclusion, while there are no specific EPS targets or forecasts available for CAVA in 2025, the company's historical growth trajectory, strategic initiatives, and positive financial performance indicators suggest that CAVA is well-positioned to maintain its EPS momentum in the coming year.