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On one level, the stock does look expensive, trading at a price-to-earnings ratio above 200, but if you take a closer look at the numbers, you might find that Cava isn't quite as expensive as you ...
CAVA PE Ratio data by YCharts. PE = price-to-earnings. PS = price-to-sales. When compared by both revenue and earnings, investors are paying a far higher multiple for Cava Group.
Cava Group (NYSE: CAVA) was one of the hottest restaurant stocks to own last year. In 2024, the stock soared by an incredible 162% as investors were thrilled with the company's impressive results.
The lower the percentage, the more expensive it is. In the case of Cava, it is 0.2%. In other words, the amount of required growth baked into Cava is outrageous.
Cava locations have an average unit volume (AUV) of $2.7 million. This is solid for a new restaurant concept, but there is still plenty of room for improvement over the next 10 years.
Cava ended the first half of 2024 with 341 locations. At the midpoint of the year, Chipotle had around 3,500 restaurants. It is an order of magnitude larger than Cava.
Cava said that comparable sales surged 14.4% in the period, driven by 9.5% traffic growth. That drove revenue up 35.2% to $231.4 million, which was ahead of estimates of $219.5 million.
Cava's market capitalization is up over $10 billion, whereas Cracker Barrel's has sunk down to a measly $1 billion. Therefore, Cava is worth 10 Cracker Barrels, in a manner of speaking. CAVA ...