Group 1: Company Overview - Cava operates a chain of fast-casual restaurants with a Mediterranean theme, aiming to replicate the success of Chipotle Mexican Grill [4] - As of the end of 2024, Cava had 367 stores and demonstrated strong comparable sales growth, with a year-over-year increase of 21% in Q4 2024 [5] - The company opened 58 new stores in 2024 and plans to open approximately 64 stores in 2025, indicating a steady growth trajectory [6] Group 2: Financial Performance - Cava's contribution margin expanded by 50 basis points to 22.4%, and average unit volume increased from $2.78 million to $2.87 million, enhancing per-store profitability [5] - Net income surged from $2 million to $78.6 million year-over-year in Q4 2024 [5] - Sales increased by 33% last year, but growth is expected to decelerate, with management guiding for a comparable sales growth of 7% in 2025 [7][10] Group 3: Market Expectations and Valuation - Cava's stock is currently down 18% this year, trading at a forward price-to-earnings ratio of 130, indicating high market expectations [9] - The price-to-sales ratio is currently 11, with a hypothetical scenario suggesting that if it decreases to 5 in 10 years, the market cap could reach $19.5 billion, nearly double its current market cap of $10.7 billion [11] - Despite the potential for growth, Cava may not be the guaranteed path to millionaire status due to high expectations already priced into the stock [12]

J.P. Morgan analyst Matthew R. Boss reiterated an Underweight rating on the shares of Six Flags Entertainment Corp FUN with a price forecast of $46.00.FUN’s fourth-quarter EBITDA fell approximately 30% short of the Street’s estimate of $190 million.The miss was driven by both revenue and cost discrepancies, with revenue increasing 3.6% year-over-year to $687 million, below the Street’s forecast of $704 million. According to the analyst, higher total costs resulted in an EBITDA margin of 19.0%, well below th ...