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Argus Lowers Cava Group (CAVA) PT to $76, Cites Realistic Calibration of Lowered Same-Store Sales Estimates
Yahoo Financeยท 2025-09-15 13:09
Group 1 - Cava Group Inc. is recognized as a promising stock with significant upside potential, despite a recent price target reduction from Argus to $76 from $110 while maintaining a Buy rating [1][3] - For Q2 2025, Cava Group reported revenue of $278.2 million, marking a 20.3% year-over-year increase, with adjusted EBITDA of $42.1 million, a 22.6% increase from Q2 2024, and a net income of $18.4 million [2] - The company opened 16 new restaurants in the quarter, increasing the total number of locations to 398, and reported a restaurant-level profit margin of 26.3% [2][4] Group 2 - Cava Group has lowered its same-store sales growth estimates for the year, which is viewed as a realistic adjustment [1][3] - The company anticipates that tariffs on certain products may impact costs, but brand health scores, including NPS and value scores, have shown improvement [3] - Cava is leveraging technology such as Hyphen and AI-camera-vision to enhance operational efficiency and digital order accuracy [3]