CAVA Group, Inc.: Why We Are Cautious About Them Despite The Expansion of Store Footprint and Market Penetration?

CAVA’s first quarter of 2024 financial results depict a mixed yet optimistic scenario for the Mediterranean cuisine leader. The company reported solid revenue growth of 30.3% year-over-year reaching $256.3 million and a notable addition of 14 new restaurants, indicating aggressive expansion strategies into both existing and new markets. The same-restaurant sales experienced a moderate increase of 2.3% or 30.7% on a 2-year basis which, while positive, might suggest a deceleration in same-restaurant sales growth momentum when compared to historical data.