Is Cava Stock the Real Deal for Long-Term Investors?
Cava Group (NYSE: CAVA) went public in June, and it has been a hot buy since then, rising by 24%. The restaurant company provides customers with healthy, Mediterranean menu options. It has a wide appeal, and the business has been generating some solid growth in recent years. Is this a no-brainer stock for investors to add to their portfolios today, or should you hold off on Cava?
Cava's business has been growing significantly. Since 2016, sales have risen at a compound annual rate of 49%. The problem is that its bottom line remains in the red. In fiscal 2022 (which ended on Dec. 25, 2022), the company reported a net loss of just under $59 million. That's up from a loss of $37 million a year earlier.
The business boasts that it is profitable -- but at a restaurant level, with margins improving in recent years.
Source Fool.com
