1 Wall Street Analyst Thinks Cava Stock Is Going to $70. Is It a Buy?
Sales at restaurant chain Cava (NYSE: CAVA) are booming, and Argus analyst Christine Dooley expects the fast-casual winner to keep growing for years to come. Dooley upgraded Cava to "buy" on Wednesday and assigned a $70 price target to the stock. That price target represents potential upside of about 16%.
Cava enjoyed same-restaurant sales growth of 11.4% in the fourth quarter of 2023. This helped fuel overall revenue growth of 36%, while revenue at Cava locations soared 53% (conversions of Zoe's Kitchen locations were responsible for the discrepancy).
The company opened 19 new locations in the fourth quarter, bringing its total restaurant count to 309. For 2024, the company expects to increase its restaurant count by 48 to 52 locations while generating same-restaurant sales growth between 3% and 5%.
Source Fool.com
