The Motley Foolยท2025-03-08 13:00Group 1: Cava Holding (CAVA) - Cava has delivered multi-bagger returns since going public less than two years ago, but its stock has pulled back 43% from its peak due to valuation concerns and macroeconomic issues [2][6] - In Q4, same-store sales increased by 21.2%, and overall revenue rose by 28.3%, indicating strong customer growth and frequency [3] - The restaurant-level profit margin for the full year was 25%, and adjusted EBITDA increased from $73.8 million to $126.2 million [4] - Cava aims to expand from 367 restaurants in 2024 to 1,000 by 2032, indicating significant growth potential [5] Group 2: On Holding (ONON) - On is a young activewear brand experiencing strong growth, with Q4 sales increasing by 41% year over year, driven by a 49% rise in direct-to-consumer sales [8] - The brand has developed a loyal customer base among affluent consumers and is working to expand its market share through partnerships, such as with celebrity Zendaya [9] - Profitability is improving rapidly, with gross margin expanding from 60.4% to 62.1% year over year in Q4, and net income rising by 436% [10] - On stock is currently trading at a reasonable valuation of 33 times forward earnings, presenting an attractive investment opportunity [11] Group 3: Toast (TOST) - Toast is well-positioned to benefit from the growing adoption of cloud-based technology solutions in the restaurant industry, despite a recent 20% pullback from its 52-week high [12] - Revenue based on the annualized recurring run-rate grew by 34% year over year in Q4, serving 134,000 locations with significant room for growth in the U.S. market [14] - The company is expanding its platform capabilities to cater to various service models, enhancing revenue potential from existing customers [15] - Toast has not yet tapped into the global restaurant industry, which includes an estimated 15 million locations, indicating substantial long-term growth potential [16]