Added to YB: 2024-10-14
Pitch date: 2024-10-12
CAVA [bearish]
CAVA Group, Inc.
+60.54%
current return
Author Info
Waterboy Stocks is a value investor sharing stock pitches on their blog. Sign up for the newsletter.
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
$5.2B
Pitch Price
$134.68
Price Target
N/A
Dividend
N/A
EV/EBITDA
24.91
P/E
38.85
EV/Sales
4.66
Sector
Hotels, Restaurants and Leisure
Category
N/A
Waterboy’s Short Candidate: CAVA Group, Inc.
CAVA short: Mediterranean fast-casual chain at 112x EV/EBITDA. Market expects next Chipotle, but 1,100 stores by 2032 seems optimistic. Rapid growth from Zoes Kitchen acquisition. Risks: competitive industry, slowing same-store sales, scaling challenges. Low-cost conversions may not last. Euphoric valuation ignores risks.
Read full article (1 min)