CAVA Group: Growth Story Far from Over, Analysts Bullish on Future Prospects

CAVA Group's stock has experienced volatility, but its operational performance is strong and accelerating. Analysts remain bullish, with an Overweight rating and a $100 price target. The company plans to reach at least 1,000 locations by 2032, driven by its efficient business model. CAVA's recent 28.2% revenue growth, driven by a 7.5% rise in customer traffic, supports its premium valuation.

CAVA Group, Inc. (NYSE:CAVA) has seen its stock experience volatility recently, but the company's operational performance remains robust and accelerating. Analysts remain bullish, with an Overweight rating and a $100 price target set by KeyBanc [2]. The company plans to reach at least 1,000 locations by 2032, driven by its efficient business model. CAVA's recent 28.2% revenue growth, driven by a 7.5% rise in customer traffic, supports its premium valuation.

On Monday, CAVA Group saw unusually large options trading, with investors acquiring 36,520 call options, a 55% increase compared to the average daily volume of 23,563 call options [1]. This significant trading volume indicates investor interest and optimism about the company's future prospects.

The company's recent quarterly earnings report showed strong performance. CAVA Group reported $0.22 EPS for the quarter, beating analysts' consensus estimates of $0.14 by $0.08. Revenue for the quarter was $331.83 million, up 28.1% compared to the same quarter last year [1]. The company's net margin was 13.70%, and its return on equity was 10.61%.

Insiders have also been active in the stock. CAO Adam David Phillips sold 739 shares, and CEO Brett Schulman sold 31,856 shares in transactions on Monday, June 16th. Insiders own 12.10% of the company's stock [1].

Institutional investors have shown strong support for CAVA Group. Jennison Associates LLC, Vanguard Group Inc., Price T Rowe Associates Inc., Nuveen LLC, and Alliancebernstein L.P. have all increased their holdings in the company [1]. These institutional investors now own 73.15% of the stock.

Analysts have been mixed in their ratings for CAVA Group. KeyBanc initiated coverage with an Overweight rating and a $100 price target. Robert W. Baird has an Outperform rating with a $115 target, while Citigroup has a Neutral rating with a $115 target. Barclays has an Equal Weight rating with a $90 target, and UBS Group has a Neutral rating with a $112 target. One analyst has a Sell rating, five have a Hold rating, and twelve have a Buy rating. The stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $118.94 [1].

CAVA Group's strong operational performance, investor interest, and analyst support suggest that the company is well-positioned for continued growth. However, investors should be aware of the stock's volatility and the risks associated with its premium valuation.

References:
[1] https://www.marketbeat.com/instant-alerts/cava-group-sees-unusually-large-options-volume-nysecava-2025-06-30/
[2] https://za.investing.com/news/analyst-ratings/keybanc-initiates-coverage-on-cava-group-stock-with-overweight-rating-93CH-3776584