11 Best Food Stocks to Buy According to Wall Street Analysts

1. CAVA Group, Inc. (NYSE:CAVA)

Average Price Target Upside Potential According to Analysts: 31.44%

Number of Hedge Fund Holders: 41

CAVA Group, Inc. (NYSE:CAVA) is one of the best food stocks to buy according to Wall Street analysts. On July 2, KeyBanc initiated coverage on CAVA Group, Inc. (NYSE:CAVA) and gave it an “Overweight” rating with a price target of $100.

The research firm believes CAVA Group, Inc. (NYSE:CAVA) is the top brand in the fast-growing Mediterranean fast-casual restaurant segment. KeyBanc noted that there are not many direct competitors in this segment.

The firm’s analysts compared CAVA Group, Inc.’s (NYSE:CAVA) potential growth to what Chipotle has achieved over the past two decades. This suggests that the company could become the main name in Mediterranean food and expand into new markets across the US.

KeyBanc analysts pointed out CAVA Group, Inc.’s (NYSE:CAVA) new stores are performing well, bringing in returns that rank among the best in the industry. This strong performance is expected to help the company sustain double-digit unit growth. Same-store sales are also expected to perform well, even if there is moderation in the near term.

While acknowledging CAVA stock trades at approximately 115 times and 45 times KeyBanc’s 2026 estimated EPS and EBITDA, respectively, the firm believes the company’s pricing power, expansion opportunities, and potential operational efficiencies can drive sustainable earnings growth.

KeyBanc noted that CAVA Group, Inc. (NYSE:CAVA) is trading at about 115 times its estimated earnings per share and 45 times its estimated EBITDA for 2026. However, the firm believes that the company’s pricing power, opportunities for growth, and operational efficiencies can support earnings growth.

CAVA Group, Inc. (NYSE:CAVA) is a food and restaurant company that operates a chain of Mediterranean fast-casual restaurants.

While we acknowledge the potential of CAVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CAVA and that has a 100x upside potential, check out our report about this cheapest AI stock.

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