Cava Group pullback a buying opportunity, says Stifel

While “disappointed” by Cava‘s Q2 same-restaurant sales growth of “just” 2.1%, Stifel analyst Chris O’Cull doesn’t think this justifies a $2B hit to market value and sees the sharp pullback in shares as a buying opportunity, the analyst tells investors. Despite the comp miss, Cava beat EBITDA estimates and new stores are also ramping quickly, says the analyst, who views the recent weakness as “a temporary setback, not a change in the fundamental outlook.” Stifel keeps a Buy rating and $125 price target on Cava shares.