CAVA GROUP INC (CAVA)

CAVA Group, Inc. operates a category-defining Mediterranean fast-casual restaurant brand. The Company operates approximately 352 fast-casual CAVA Restaurants in 25 states and Washington, D.C. It operates in the growing limited-service restaurant sector as well as the health and wellness food category. The Company’s Mediterranean cuisine unites taste and health, with a menu that features chef-crated and customizable bowls and pitas. Its dips, spreads, and dressings are centrally produced and sold in grocery stores.

Its menu fulfills a range of dietary preferences, from hearty and indulgent to vegan, vegetarian, gluten-free, dairy-free, paleo, keto, and nut-free diets. It serves guests across gender lines, age groups, and income levels.

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Financial Snapshot

Income Statement (*values displayed in millions)

How do they make money?

• Restaurant Sales: CAVA generates most of its revenue by selling food and beverages directly to customers through its chain of restaurants. The menu includes Mediterranean-inspired items such as grain bowls, salads, pitas, and various toppings and sauces. Customers often customize their meals, which adds to the appeal of their offerings.

• Retail Product Sales: CAVA sells its branded products, such as dips, spreads, and dressings (e.g., hummus and tzatziki), through grocery stores and other retail outlets. This line of business provides an additional revenue stream and increases brand visibility.

• Digital and Delivery Channels: CAVA also generates revenue through online orders placed via its website, mobile app, and third-party delivery platforms. This segment has grown significantly due to increased consumer demand for convenience.

Good Time to Buy?

At the time of writing, CAVA is down 41% since it’s November 2024 52 Week all time high. In our opinion, that’s a very nice discount to take advantage of.

We believe that there’s still a lot of growth for this company and it’s still very early. The company has been around since 2015 but went public (Initial Public Offering) in June of 2023. CAVA is only in 25 states right now and Washington D.C. We expect CAVA to aggressively expand and establish a footprint in those remaining states. We strongly believe that CAVA will be the next Chipotle (CMG), but for Mediterranean cuisine. Don’t miss out.

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