CAVA Stock Forecast & Price Target

Cava Group Inc experienced a substantial revenue growth of 35%, driven by over 13% same-store sales growth, with traffic contributing nearly 9% to this increase. The company anticipates an improvement in restaurant-level margins, projecting a rise to 25% by 2027, alongside a significant expansion in average unit volumes, which increased from approximately $2.6 million in 2023 to about $3 million in 2025. Additionally, the Mediterranean cuisine market is forecasted to expand at a 7%-8% CAGR through 2033, aligning with Cava's aggressive growth strategy of targeting a 15%-unit CAGR to meet rising consumer demand.

Cava Group Inc has experienced a significant slowdown in its comparables, with an estimated comp of only 3.5% in 2025 following previous strong performances, adversely affected by an uncertain macroeconomic environment and challenging comparisons in new markets. Additionally, the company's restaurant-level margin is projected to decline by 50 basis points due to increased commodity costs and ongoing labor investments, which, coupled with reduced guidance for fiscal year 2026, signals escalating operational pressures. Furthermore, a broader decline in consumer spending tied to rising economic challenges raises concerns about traffic trends and sales results, negatively impacting the stock's outlook.