Added to YB: 2024-03-14
Pitch date: 2024-03-12
CAVA [bearish]
CAVA Group, Inc.
-23.04%
current return
Author Info
No bio for this author
Upgrade to Yellowbrick Premium to unlock investor returns. Upgrade to Yellowbrick Premium
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
$8.4B
Pitch Price
$66.05
Price Target
25.00 (-69%)
Dividend
N/A
EV/EBITDA
38.97
P/E
133.89
EV/Sales
7.20
Sector
Hotels, Restaurants and Leisure
Category
value
Show full summary:
CAVA Group, Inc.: Understanding the Discrepancy Between Price and Value
$CAVA: Trades at 300x 2024E EPS, 200x 2025E. With sub 20% rev growth & 2-3% net margins, overvalued at 9x sales; comps suggest 3-4x. Fair value ~$25, not current $62. Overvalued; needs 30-40x EPS est. to align with growth rates. Revenue & profit metrics don't justify price.
Read full article (1 min)