CAVA (US:CAVA) Benzinga·2026-01-09 18:27Core Viewpoint - Cava Group Inc. is gaining attention from analysts who are optimistic about its long-term growth potential despite short-term challenges, with an Outperform rating and a price target of $85 set by Telsey Advisory Group analyst Sarang Vora [1] Differentiation and Brand Strength - Cava Group differentiates itself with authentic Mediterranean offerings, disciplined execution, and attractive unit economics [2] - The company aims to open over 1,000 restaurants by 2032, increasing from approximately 435 locations in 2025, indicating a multi-year growth runway [2] - Average unit volumes are expected to increase due to menu innovation, remodels under Project Soul, and technology upgrades like the Connected Kitchen initiative [2] Company Culture and Long-Term Upside - Cava Group's culture emphasizes food quality, talent development, customer centricity, and hospitality, which is likely to contribute to long-term growth [3] Near-Term Headwinds - The business experienced a slowdown in 2025 due to challenging comparisons from strong prior product launches, but this has been reflected in a 40% decline in stock price over the past year [4] - Analysts expect shares to outperform in 2026 and beyond as focus shifts back to long-term unit growth and restaurant performance [4] Macro Economic Factors - Modest macro tailwinds are anticipated from higher tax refunds, stable-to-lower gas prices, and lower interest rates [5] - Cava Group is valued at $85 per share based on a ~54x EV/EBITDA multiple applied to a 2026 EBITDA estimate of $181 million [5] - Same-store sales are projected to improve to the 4%-5% range in the second half of 2026 and 2027, recovering from a decline in late 2025 [5] - Restaurant-level margins are expected to recover in the second half of 2026 and expand in 2027 [5] Stock Performance - Cava Group shares were reported to be up 2.28% at $71.19 at the time of publication [6]