KeyBanc analyst Christopher Carril lowered the firm’s price target on Cava Group (CAVA) to $85 from $100 and keeps an Overweight rating on the shares. The firm notes the company’s Q2 results saw same-store sales trends miss consensus and likely fell short of buy-side expectations. That said, EPS/EBITDA exceeded Street estimates as store-level margins fell in line with consensus and G&A largely offset most of the revenue shortfall. Same-store sales growth improved in July/quarter-to-date, but trends likely remain short of the mid-single-digit range anticipated by the Street in the second half of the year, KeyBanc adds.
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