Is Cava a Top Stock to Buy Before the New Year?
Cava Group (NYSE: CAVA), the upstart Mediterranean-inspired fast-casual restaurant chain, quickly caught fire following its initial public offering in June. At its peak, the company's market capitalization exceeded $6.3 billion. But it's been a disappointing ride since then as investor optimism has waned. Cava shares are currently down 40% from their July all-time high.
This not an uncommon pattern for young companies. Nonetheless, there are still some good reasons for investors to be bullish on Cava's long-term outlook. So is this young restaurant business a top stock to buy before the new year?
Bulls are most likely going to be attracted to the company's growth prospects, above all other factors. It's easy to see why. Cava's revenue jumped 50% in the most recent quarter (Q3 2023, ended Oct. 1), and analysts expect sales to rise by 33% in the fourth quarter.
Source Fool.com
