The firm expects Cava’s same-store sales to outperform competitors amid a challenging economic environment.
- UBS analyst Dennis Geiger upgraded CAVA to Buy from Neutral and sees 10% upside.
- Geiger said CAVA remains a rare growth story in the restaurant sector, supported by unique menu offerings.
- CAVA plans to hire more than 2,500 employees this year to support the opening of over 75 new restaurants.
CAVA Group (CAVA) is drawing attention after Wall Street optimism has put the fast-casual Mediterranean chain in focus among investors. Geiger said CAVA remains a rare growth story in the restaurant sector, supported by unique menu offerings.
Analyst’s Bullish Call On CAVA
UBS analyst Dennis Geiger upgraded CAVA to “Buy” from “Neutral” and raised his price target to $90 from $85, citing a stronger growth trajectory and improving sales momentum. The new price target implies a 10% upside potential to the stock’s last closing price.
Geiger highlighted that Cava Group is positioned to benefit from a resilient same-store sales path alongside what he described as industry-leading unit expansion.
He noted that the company’s performance potential stands out even as broader consumer demand faces macroeconomic pressures, with the brand showing greater durability than peers.
According to the analyst, Cava "remains a compelling growth story, which is increasingly scarce in the sector.” The company has supported its growth plans by offering unique Mediterranean-style menu items and keeping customers interested in its brand.
UBS also pointed to ongoing investments in operations and infrastructure as key enablers of sustainable performance at new locations and improved returns.
CAVA stock inched 0.4% lower overnight, Wednesday, after posting its biggest single-day gain in over three months in the regular session.
CAVA’s Growth Strategy Centers On Hiring
On Tuesday, CAVA said it is planning to hire more than 2,500 workers this year to support its expansion. The company expects to open over 75 new restaurants, making hiring a major part of its growth strategy.
During the first-quarter earnings call last month, CEO Brett Schulman said CAVA has avoided heavy discounts and promotional offers that many competitors use to attract customers. Instead, the company has focused on long-term growth, modest price increases, and building customer loyalty. He noted that CAVA's price hikes since 2019 have been lower than inflation.
CAVA Retail Traders View
On Stocktwits, retail sentiment around the stock improved to ‘bullish’ from ‘neutral’ the previous day, with a 242% surge in message volume over 24 hours.
A user said, “Consumer food/drink stocks benefiting from Ai rotation as retail seeks alternative sectors to invest in.”
Another user said, “I can’t lie… this one is starting to catch my attention. While everyone is chasing AI names, $CAVA has been quietly building a really clean setup. A few things lining up: restaurant stocks starting to wake up, summer city traffic picking up, FIFA catalyst could bring serious foot traffic.”
“Feels like one of those names people ignore…until suddenly they’re chasing it 20% higher. Not saying it’s guaranteed, but the risk/reward here is getting interesting.”
CAVA stock has gained over 38% year-to-date.
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