How Good Has CAVA Stock Actually Been?

Core Insights - The fast casual restaurant sector presents both investment opportunities and risks, with notable volatility in stock performance [1] Company Overview - Cava Group (NYSE: CAVA) has been a notable stock since its IPO at $22 on June 15, 2023, but has experienced significant volatility [2] - The company specializes in Mediterranean cuisine and operates 415 locations across the United States [2] Stock Performance - Cava shares have decreased by approximately 65% over the past year, contrasting with an 11% increase in the S&P 500 during the same period [4] - Despite the decline, Cava's stock has more than doubled since its IPO in the first half of 2023 [8] Revenue and Growth Metrics - Revenue growth at Cava has slowed for four consecutive quarters, with year-over-year sales growth dropping from 39% to 20% [5] - Same-restaurant sales growth has significantly decreased, with a rise of only 2.1% in Q2 and 1.9% in Q3 [5][6] - The company has lowered its full-year guidance for same-restaurant sales and adjusted some margin-related metrics [6] Historical Performance - Over the past two years, Cava's stock has risen by 46%, slightly outperforming the S&P 500's 45% return [7] - Prior to going public, Cava's sales growth was only 13% for the entirety of 2022, indicating a strong growth trajectory post-IPO [8]