Cava Is Slowing Down. Here's Why That's Probably a Good Thing for Investors.
Cava Group (NYSE: CAVA) is a fast-casual restaurant that applies the assembly-line concept of Chipotle Mexican Grill to Mediterranean food. It has caught on quite nicely with consumers, noting that the 2023 same-store sales growth came in at an impressive 17.9%. And yet Cava is reducing its growth plans in 2024. Here's why it is probably a good decision.
Chipotle has over 3,400 restaurants that allow customers to build their meal by selecting from a collection of fresh items in an assembly-line ordering process. Cava uses the same assembly-line approach with its Mediterranean food and has around 309 locations. That suggests that the Cava concept could grow tenfold and still have even more room to grow.
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Source Fool.com
Chipotle Mexican Grill Inc. Stock
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