Added to YB: 2024-06-17
Pitch date: 2024-06-16
CAVA [neutral]
CAVA Group, Inc.
-38.48%
current return
Author Info
No bio for this author
Company Info
CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. It also offers dips, spreads, and dressings through grocery stores.
Market Cap
$6.3B
Pitch Price
$90.05
Price Target
N/A
Dividend
N/A
EV/EBITDA
24.97
P/E
95.79
EV/Sales
4.62
Sector
Hotels, Restaurants and Leisure
Category
N/A
Cava's Nosebleed Valuation Makes (No)Sense?
CAVA IPO'd a year ago, often compared to Chipotle. Despite inferior AUV & restaurant margins vs CMG, CAVA trades at a hefty 97x '24 EBITDA. On a per-unit basis, CAVA's enterprise value is 4x higher than CMG's, despite lagging in key metrics. While not necessarily a short, valuation appears stretched.
Read full article (1 min)