3 Big Problems Cava Investors Need to Consider
Young, fast-growing food companies can be very exciting investments, which is both good and bad. Cava Group (NYSE: CAVA) completed its initial public offering on June 20, so it is a fresh new face in the restaurant space. Before you get caught up in the hype surrounding this Mediterranean fast-casual restaurant and its rapid growth, here are three things to consider.
When a business goes public, the first year's financial results basically have no comparison point. So as you look at the company's post-IPO quarterly results, they aren't really an apples-to-apples comparison to the pre-IPO figures presented. To highlight this fact, look no further than Cava's second-quarter earnings release.
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Source Fool.com
