RBC Capital Initiates Coverage on CAVA Group with Outperform Rating, PT $80.

RBC Capital Initiates Coverage on CAVA Group with Outperform Rating, PT $80.

RBC Capital Markets has initiated coverage on CAVA Group with an Outperform rating and a price target of $80 per share. This move comes on the heels of CAVA's recent expansion efforts and leadership changes, which have been closely watched by investors and analysts alike.

In September 2025, CAVA Group announced the departure of Chief Operations Officer Jennifer Somers and the opening of its second Michigan restaurant, marking its first foray into Detroit. This expansion brings CAVA's presence to 28 states and the District of Columbia, with plans to reach at least 1,000 U.S. locations by 2032. The company's aggressive geographic expansion is a key driver for future results, but it also highlights the challenge of scaling efficiently without diluting brand relevance or weakening restaurant-level returns Will CAVA's (CAVA) Leadership Shift and Detroit Expansion Reshape Its Aggressive Growth Narrative?^[1].

The recent leadership transition at CAVA does not appear to have a material near-term impact on the company's most important catalysts, such as new restaurant openings and menu innovation. However, it underscores the ongoing risk of operational complexity as CAVA executes on its national growth targets. The company's narrative projects $1.9 billion in revenue and $126.2 million in earnings by 2028, requiring 20.4% yearly revenue growth and a $14.5 million decrease in earnings from the current $140.7 million Will CAVA's (CAVA) Leadership Shift and Detroit Expansion Reshape Its Aggressive Growth Narrative?^[1].

RBC Capital's Outperform rating and $80 price target reflect their positive view on CAVA's growth prospects and strong unit economics. The analyst firm acknowledges the risks associated with rapid expansion but believes that CAVA's ability to maintain its growth trajectory and operational efficiency will drive significant value creation for shareholders.

Investors should consider a mix of perspectives before making investment decisions, as community estimates on CAVA’s fair value range widely from $24 to $119 per share, reflecting contrasting outlooks. While CAVA's aggressive expansion narrative is compelling, it is crucial to weigh the risks and rewards carefully.