Cava Stock: Analysts Rush to Raise Price Targets After Earnings
Wedbush, for one, issued a Street-high price target for Cava stock after its beat-and-raise quarter. Here's what you need to know.


Cava Group (CAVA) stock jumped more than 16% out of the gate Wednesday after the fast-casual Mediterranean restaurant chain beat top- and bottom-line expectations for its third quarter and raised its full-year outlook.
In the 12 weeks ended October 6, Cava's revenue increased 39% year over year to $243.8 million, driven by new restaurant openings and an 18.1% jump in same-restaurant sales. Its earnings per share improved 150% from the year-ago period to 15 cents.
"Our third quarter results demonstrate the strength of our Mediterranean category-defining brand and the broad appeal of our unique value proposition, creating what is quickly becoming the next major cultural cuisine category," said Cava CEO Brett Schulman in a statement. "Third quarter traffic grew 12.9%, we opened 11 net new restaurants and, driven by the power of our unit economic engine, we generated average unit volume of $2.8 million."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results easily beat analysts' expectations. Wall Street was anticipating revenue of $234 million and earnings of 11 cents per share, according to CNBC.
As a result of its strong performance in the first nine months of the year, Cava raised its full-year outlook. Here's what the company now expects to achieve:
Metric | New outlook | Previous outlook |
---|---|---|
Net new restaurant openings | 56 to 58 | 54 to 57 |
Same-restaurant sales growth | 12% to 13% | 8.5% to 9.5% |
Restaurant-level profit margin | 24.5% to 25% | 24.2% to 24.7% |
Adjusted EBITDA | $121 million to $126 million | $109 million to $114 million |
Is CAVA stock a buy, sell or hold?
Cava Group has been red hot on the price charts in 2024, nearly quadrupling in value for the year to date. Unsurprisingly, analysts are bullish on the consumer discretionary stock. According to S&P Global Market Intelligence, the consensus recommendation among analysts it tracks is a Buy.
However, analysts' price targets have not been able to keep up with the rally in the large-cap stock. Indeed, the average price target of $142.25 represents a steep discount to current levels. Analysts may very well raise their price targets in the days and weeks ahead following CAVA's beat-and-raise quarter.
Financial services firm Wedbush is one of the firms raising their price target on the stock after earnings, to a Street-high $190 from $155, while maintaining its Outperform (Buy) rating.
"We view CAVA as one of a handful of publicly traded restaurants positioned to deliver positive annual transaction growth over the longer-term, with realistic long-term revenue and unit growth targets," says Wedbush analyst Nick Setyan. "With improved near- and medium-term visibility, we also continue to view current 2024 and 2025 same-store sales growth and EBITDA [earnings before interest, taxes, depreciation and amortization] expectations as conservative."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Amazon Ends Free Shipping Benefit Sharing with Non-Household Members
Starting October 1, Prime members will no longer be able to share shipping perks with those outside their household.
-
Big Tech Names Rise Above Broad Weakness: Stock Market Today
Some familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
Big Tech Names Rise Above Broad Weakness: Stock Market Today
Some familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
Klarna IPO: Should You Buy KLAR Stock?
The Klarna IPO is expected to be one of the biggest offerings of the year, with the buy-now-pay-later firm expected to start trading next week.
-
Alphabet Stock Pops After Google Antitrust Ruling: What to Know
GOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
7 Mistakes to Avoid When You First Start Investing
Investing brings the opportunity to build wealth, but there are plenty of mistakes that can be made. Here are seven common ones and how they can be avoided.
-
A Fidelity Fund Misses Out on Soaring Bank Stocks
The Fidelity International Growth Fund has outperformed over the long term, but its lagging exposure to bank stocks has weighed on more recent returns.
-
More Than Money: The Hidden Toll of Financial Abuse of Older Adults
Financial abuse from schemes involving tech support, government impostors, false sweepstakes, grandchild hoaxes and online shopping issues can cause thousands of dollars in losses.
-
I'm a Financial Planner: Here Are Three High-Impact Ways to Make a Difference With Your Dollars
The world often feels out of control, but here are three ways to use your money — through investments, charitable giving and political donations — to help create a more just and sustainable future.
-
Stocks Slide to Start September: Stock Market Today
Seasonal trends suggest tough times for the stock market as we round into the end of the third quarter.