CAVA Group (NYSE:CAVA) Among Top Consumer Cyclical Picks Despite Lowered Q2 Outlook

CAVA Group, Inc. (NYSE:CAVA) is one of the best consumer cyclical stocks to buy. On June 18, Stifel maintained its Buy rating on CAVA Group, Inc. (NYSE:CAVA) shares but reduced its price target to $125 from $175.

Citing challenging comparisons following Grilled Steak’s debut last year, the firm lowered its second-quarter same-restaurant sales growth projection to 5.5%, below the Street expectation of 6.9%.

However, despite the near-term adjustment, CAVA’s prediction for a three-year stack in the high 30% range is consistent with Stifel’s full-year same-restaurant sales growth estimate of roughly 7%.

Stifel determined that average unit volume growth, margin expansion, and unit growth were the three main drivers of CAVA’s longer-term valuation. The firm believes that, should brand recognition increase, average unit volumes will probably climb faster than expected.

CAVA Group, Inc. (NYSE:CAVA) is a fast-casual Mediterranean restaurant chain that focuses on adaptable meals. It operates company-owned locations and produces branded retail items through its vertically integrated model.

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Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

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