Down 40%, Is Now the Time to Buy Recent IPO Cava Group Stock?
Cava Group (NYSE: CAVA) went public this summer to much fanfare. The Mediterranean restaurant that modeled itself after saw its stock soar more than 100% on its first trading day to a market cap of close to $5 billion. With Chipotle up close to 5,000% since going public around 20 years ago, investors were ecstatic to see what they believe could be the next great fast-casual chain to take over the country.
Since then, the excitement has waned. Shares of Cava stock are off 40% from highs reached earlier this summer. The stock now sits at a market cap of $3.9 billion. But looking at its underlying business operations, it's clear that Cava Group continues to crush it. Does that make the stock a buy?
Cava reported its third-quarter earnings in early November. Through the first nine months of 2023, Cava generated $551 million in revenue, up from $434 million in 2022. More importantly, as the company winds down its Zoe's Kitchen acquisition and converts them to the Cava brand, sales at Cava restaurants hit $174 million last quarter, up close to 50% versus 2022.
Source Fool.com
Chipotle Mexican Grill Inc. Stock
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