12 Best Restaurant Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 47

CAVA Group, Inc. (NYSE:CAVA) owns and operates a restaurant business. It is the brand that defines the Mediterranean fast-casual restaurant genre, combining healthy cuisine with strong, satisfying flavors on a large scale. The company produces its dips, spreads, and dressings at one location and sells them in supermarkets. CAVA and Zoes Kitchen are the two reportable segments that run the business. The CAVA segment accounts for the majority of the company’s revenue.

Important growth factors include menu additions like steak that have effectively attracted more customers, and an improved rewards program meant to promote connection and return business. The low cost of CAVA Group, Inc. (NYSE:CAVA) remains a major advantage in the face of broader economic restraints, attracting cost-conscious consumers, which makes it one of the Best Restaurant Stocks.

In Q4 of 2024, a remarkable 28% YoY revenue rise to $225.1 million and the 21.2% same-restaurant sales for the firm show CAVA Group, Inc. (NYSE:CAVA)’s strong momentum. The EPS of $0.05 fell short of the $0.07 expert average, but it was still stronger than the year before. The company plans to open 62-66 more locations in 2025 and is confirming its commitment to expanding its fast-casual Mediterranean style by opening 15 more restaurants in Q4.