Where Will Cava Stock Be in 5 Years?
Restaurateur Cava Group (NYSE: CAVA) operates a new food concept with a Mediterranean theme. Same-store sales growth of 18.2% in the second quarter suggest that consumers like what the company is offering. And, over the next five years, that's likely to mean an aggressive push for growth at Cava. Here's what that might look like and what investors need to watch to make sure the company is executing well.
Given the assembly line style of Cava's fast casual restaurants, many on Wall Street are comparing it to Chipotle Mexican Grill. There are very obvious similarities, noting the also obvious difference that one serves Hispanic-themed food and the other Mediterranean.
But there's another big difference here. At the end of this year's second quarter -- Cava's first as a public company -- it had 279 restaurants. Chipotle ended the same quarter with more than 3,250 restaurants. The difference between those two numbers serves to show how small Cava is, but also why investors are so excited.
Source Fool.com
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