William Blair analyst Sharon Zackfia has maintained their bullish stance on CAVA stock, giving a Buy rating today.
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Sharon Zackfia’s rating is based on CAVA Group, Inc.’s strong new unit productivity and promising expansion potential. Despite facing macroeconomic challenges, such as reduced spending from younger demographics due to rising unemployment, CAVA’s new units are performing exceptionally well. The class of 2025 is showing average unit volumes exceeding $3 million, surpassing both the fleet average and initial targets, which indicates a robust return on investment and efficient cost management.
Moreover, the impressive performance of these new units in both existing and new markets suggests significant growth potential for CAVA. The brand is on track to expand its footprint considerably, with projections indicating the possibility of reaching 2,000 domestic locations. This expansion is supported by current growth plans and a strong per-capita density in key markets like Washington, D.C., reinforcing the company’s potential to become a much larger brand in the near future.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $65.00 price target.