Latest news with #CAVAGroup
Yahoo
5 days ago
- Business
- Yahoo
3 Stocks to Buy on Growing Restaurant Sales Amid Price Challenges
U.S. retail sales have had a roller-coaster ride over the past few months as tariff fears and high inflation have compelled consumers to spend cautiously. However, that hasn't stopped consumers from spending lavishly at restaurants and bars. Sales at U.S. restaurants and bars have grown at a solid pace, except for occasional hiccups. Also, trade war tensions have eased substantially, and inflation is finally showing signs of cooling, which are likely to boost the restaurant industry in the near term. Given this scenario, it would be wise to invest in restaurant stocks such as BJ's Restaurants, Inc. BJRI, Wingstop WING and CAVA Group, Inc. CAVA. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Commerce Department reported that sales at U.S. restaurants totaled $99.4 billion in April, up 1.2% month over month after increasing a solid 3% in March. Economists view dining out as a key indicator of household finances. The solid jump in April indicates that the economy is still on solid ground, and despite price challenges, consumers are willing to shell out more at restaurants and bars. The jump in retail sales is being backed by a steady rise in retail sales. Retail sales rose 0.1% in April after jumping 1.7% in March. Inflation has also started showing signs of cooling lately. The consumer price index (CPI) rose 0.2% in April after falling 0.1% in March for the first time since May 2020. Year over year, CPI increased 2.3%, the smallest gain since February 2021. The April reading suggests that inflation is on track to reach the Federal Reserve's 2% target. Also, consumers were worried about the impact of sweeping tariffs announced by President Donald Trump in early April. However, he has since temporarily paused the tariffs and said that negotiations are ongoing with several countries. This has somewhat eased trade war tensions. Also, investors are hopeful that slowing inflation could see the Federal Reserve resume its rate cut campaign in September, which definitely bodes well for the restaurant industry. BJ's Restaurants, Inc. owns and operates a chain of high-end casual dining restaurants in the United States. BJRI's menu offers a wide range of dining options, including everyday lunch and dinner, special occasions and late-night business. BJ's Restaurants' expected earnings growth rate for the current year is 23.8%. The Zacks Consensus Estimate for current-year earnings has improved 9% over the past 60 days. Presently, BJRI has a Zacks Rank #2. Wingstop franchises and operates restaurants. WING's operating segment consists of the Franchise and Company segments. WING offers classic wings, boneless wings, as well as tenders that are cooked-to-order, and hand-sauced-and-tossed in various flavors. Wingstop's expected earnings growth rate for the current year is 6.3%. The Zacks Consensus Estimate for current-year earnings has improved 6.3% over the past 60 days. WING presently has a Zacks Rank #2. CAVA Group, Inc. is a category-defining Mediterranean fast-casual restaurant brand, which brings heart, health and humanity to food. CAVA is based in Washington. CAVA Group's expected earnings growth rate for the current year is 38.1%. The Zacks Consensus Estimate for current-year earnings has improved 5.5% over the past 60 days. CAVA currently has a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Wingstop Inc. (WING) : Free Stock Analysis Report CAVA Group, Inc. (CAVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
24-05-2025
- Business
- Yahoo
CAVA Group (NYSE:CAVA) Posts Sales and Net Income Growth for Q1 2025
CAVA Group recently announced an increase in sales and net income for the first quarter of 2025, maintaining its earnings guidance for the year. Despite this positive performance, the company's stock experienced a 3% decline over the past month. This movement coincided with a 3% drop in the broader market over the past week, suggesting the decline was part of a larger market trend. CAVA Group's updates on restaurant sales growth and profit margins, while stable, were countered by the downward momentum affecting the market as a whole, contributing additional weight to its share price performance. We've discovered 2 risks for CAVA Group (1 is concerning!) that you should be aware of before investing here. Uncover the next big thing with financially sound penny stocks that balance risk and reward. The recent 3% decline in CAVA Group's stock is part of a broader market trend, affecting the company's narrative despite positive earnings news. Over the last year, CAVA Group's total return was a modest 0.60%, which contrasted with the company's significant challenges compared to the US Hospitality industry's 11.6% return. This disparity highlights external pressures and market volatility influencing investor sentiment. However, the company's longer-term initiatives like geographical expansion and menu innovation, including launching grilled steak and entering new markets like Detroit, could drive future revenue growth despite potential margin pressures from increasing costs. With CAVA Group continuing to invest in technology and marketing to boost operational efficiency and brand awareness, revenue and earnings forecasts remain optimistic yet cautious. Analysts have set a price target of US$115.66, reflecting expectations of long-term value. However, the current share price of US$93.32 indicates a discount to this target, suggesting potential upside if the company successfully navigates the outlined risks, including execution challenges in new markets and increasing operational costs. Investors should weigh these elements in context with broader market conditions to assess CAVA Group's position for growth. Our valuation report unveils the possibility CAVA Group's shares may be trading at a premium. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:CAVA. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
BofA Reiterates a Buy Rating on Cava Group (CAVA), Lifts PT
On May 19, analyst Sara Senatore of Bank of America Securities reiterated a Buy rating on CAVA Group, Inc. (NYSE:CAVA) and raised the price target to $121 from $112. The analyst gave the buy rating based on CAVA Group, Inc.'s (NYSE:CAVA) growth potential and strong fiscal Q1 2025 results, which surpassed expectations on May 15. A close-up image of a colorful salad platter with toppings and dressings. The company underwent a 10.8% growth in same-restaurant sales in the quarter, driven by higher customer traffic. It also opened 15 net new restaurants. CAVA Group, Inc. (NYSE:CAVA) attained this growth despite external challenges, including Los Angeles fires and adverse weather conditions. This reflects the company's effective management strategies and resilience, supporting the Buy rating. The analyst expects the company to sustain its positive momentum in the coming quarters, supported by strategic initiatives such as successful advertising campaigns and menu innovations. Another cause of the positive outlook for CAVA Group, Inc. (NYSE:CAVA) for the analyst is the company's ability to manage operating costs and labor effectively, even while investing in employee and store development. While we acknowledge the potential of CAVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CAVA and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
BofA Reiterates a Buy Rating on Cava Group (CAVA), Lifts PT
On May 19, analyst Sara Senatore of Bank of America Securities reiterated a Buy rating on CAVA Group, Inc. (NYSE:CAVA) and raised the price target to $121 from $112. The analyst gave the buy rating based on CAVA Group, Inc.'s (NYSE:CAVA) growth potential and strong fiscal Q1 2025 results, which surpassed expectations on May 15. A close-up image of a colorful salad platter with toppings and dressings. The company underwent a 10.8% growth in same-restaurant sales in the quarter, driven by higher customer traffic. It also opened 15 net new restaurants. CAVA Group, Inc. (NYSE:CAVA) attained this growth despite external challenges, including Los Angeles fires and adverse weather conditions. This reflects the company's effective management strategies and resilience, supporting the Buy rating. The analyst expects the company to sustain its positive momentum in the coming quarters, supported by strategic initiatives such as successful advertising campaigns and menu innovations. Another cause of the positive outlook for CAVA Group, Inc. (NYSE:CAVA) for the analyst is the company's ability to manage operating costs and labor effectively, even while investing in employee and store development. While we acknowledge the potential of CAVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CAVA and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Jim Cramer Views CAVA Group (CAVA) as a 'Long-term Growth Play'
We recently published a list of . In this article, we are going to take a look at where CAVA Group, Inc. (NYSE:CAVA) stands against other stocks that Jim Cramer discussed. On Friday's episode of Mad Money, Jim Cramer reflected on a significant shift in market sentiment over the past week as he described how the mood turned from cautious to confident. 'We often speak of moments when the stock market tends to do well…. We know that stocks thrive, for instance, when interest rates are going down but there's another auspicious moment and that's when the conventional wisdom collectively decides that because of extenuating circumstances, in this case, a welcome break from ever higher tariffs, we're no longer at risk of a recession in the near future.' READ ALSO 15 Stocks on Jim Cramer's Radar and Jim Cramer Recently Commented On These 12 Stocks Cramer pointed out that this kind of collective pivot in sentiment can be just as impactful as a rate cut. He emphasized that in his long career observing markets, moments like these often mark good entry points for investors. He believes that we are currently in one of those moments. Looking back on what he called a 'very bullish' week, Cramer said it will likely be remembered as the period when Wall Street strategists began to back away from recession warnings. He said that the retreat from doomsday predictions helped fuel a strong rally, especially among industrial stocks. 'If hedge funds thought we were about to experience the apocalypse, and many of them did, then they were poorly positioned coming into this week. And when hedge funds are poorly positioned, you get incredibly motivated buyers like the ones we saw all week that help take us all the way…. And they may not be done with all of their buying, at least because we're suddenly in a very different world with the pessimists having been caught with their pants down. Until they turn optimistic, which might take a little bit, we should remain in good shape.' For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on May 16. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up image of a colorful salad platter with toppings and dressings. Number of Hedge Fund Holders: 47 CAVA Group, Inc. (NYSE:CAVA) was mentioned during the episode, and here's what Cramer had to say: 'Over the past month or so, the vast majority of stocks have rebounded from their lows. Some truly great names are still way off their highs. Take CAVA Group, the Mediterranean restaurant chain that I've been recommending for the past 18 months because I think it's a tremendous regional to national growth story… CAVA will be going up against some tough comparisons in the future, though I remain in the same place on this one. CAVA Group, Inc. (NYSE:CAVA) runs a restaurant chain under the CAVA brand and sells dips, spreads, and dressings in grocery stores. The company also offers digital ordering through its website and mobile app. Near the end of April, Cramer commented that the company could have a big run, as he said: 'I like it here. I like it here for the long term. Why? Because I think the Mediterranean is a kind of food that can be like Chipotle, it can be the previous, you know, just the way Chipotle had a big run. I think Cava can too.' Overall, CAVA ranks 7th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of CAVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CAVA and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
