Benzingaยท2025-03-20 17:22Industry Overview - Recent volatility in restaurant chain stocks has created "some opportunities" according to JPMorgan [1] - Consumer confidence has dipped, leading to more cautious discretionary spending, yet total industry supply growth remains resilient, up 12% from Q3 2018 to Q3 2024, with a CAGR of approximately 2% [1] CAVA Group - CAVA Group Inc's rating was upgraded from Neutral to Overweight, with a price target established at $110 [2] - The company has significant U.S. expansion potential and is generating free cash flows unusually early, with initiatives in place to drive sales and profits [2][3] - A long-term investment approach is recommended as the company plans to expand from 367 units to over 1,000 units [3] Yum! Brands - Yum! Brands Inc maintains a Neutral rating, with the price target raised from $138 to $160 [4] - The stock increased around 10% following better-than-expected results, with tech-fee recapture now recognized by the broader market [4] - Each $100 million of tech-fee recapture is valued at approximately 28 cents per share, aimed at easing operations for franchisees [4] Growth Projections - Taco Bell US is projected to grow from 7,604 units to 9,000 by 2030, while Taco Bell International could increase from 1,153 to 2,000 units [5] - KFC international (excluding China) is expected to grow from 16,664 to 22,300 units, and KFC China from 11,648 to 19,400 units [5] Stock Performance - CAVA Group shares increased by 5.27% to $85.27, while Yum! Brands shares rose by 0.15% to $157.25 at the time of publication [5]