Cava Expects Sales to Slow Down: Can Its Business Stay Profitable Enough for Investors?
The hype surrounding Cava Group (NYSE: CAVA) is fading. The stock initially soared over the last few months but is now down 4% since going public back in June. Although the fast-casual restaurant chain posted a strong earnings report in August that showed a profitable bottom line, investors appear to be wary about the company's future.
For one thing, Cava is projecting that its growth will decline, and that could make it difficult for it to stay out of the red. What does that all mean for investors? Let's take a look.
One of the things that has excited investors about Cava is its impressive same-restaurant (or comps) revenue growth. That's a key metric for restaurants because it tells investors whether the company is truly growing organically or whether it is just benefiting from opening more locations.
Source Fool.com
