Jim Cramer Put These 12 Stocks Under the Spotlight

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

Number of Hedge Fund Holders: 47

CAVA Group, Inc. (NYSE:CAVA) was mentioned during the episode, and here’s what Cramer had to say:

“Over the past month or so, the vast majority of stocks have rebounded from their lows. Some truly great names are still way off their highs. Take CAVA Group, the Mediterranean restaurant chain that I’ve been recommending for the past 18 months because I think it’s a tremendous regional to national growth story… CAVA will be going up against some tough comparisons in the future, though I remain in the same place on this one.

I view CAVA as a long-term growth play, or what’s known as a compounder on Wall Street, we like those, which grows and grows steadily over a long period of time. Even after the stock’s big pullback from its highs, this isn’t a value play by any stretch of the imagination as CAVA still sells for north of 150 times earnings. Nobody says it’s cheap. These great growers don’t come cheap. I just think it’s a situation where the scale of the opportunity is much, much larger than CAVA’s current $11 billion market capitalization….

Even if the market rolls over and CAVA pulls back again, then I once again view that as an opportunity to build a position, just like when I told you to buy the stock back at 77 in April. Despite the hand ringing about the economy, I’ve not seen anything to make me believe that CAVA can’t still become the great next story. And I’m talking about yes, when we talk about restaurants, maybe the next Chipotle, as long as the regional and national expansion is on track, and it is, this one should have plenty more upside. Great opportunity here.”

CAVA Group, Inc. (NYSE:CAVA) runs a restaurant chain under the CAVA brand and sells dips, spreads, and dressings in grocery stores. The company also offers digital ordering through its website and mobile app. Near the end of April, Cramer commented that the company could have a big run, as he said:

“I like it here. I like it here for the long term. Why? Because I think the Mediterranean is a kind of food that can be like Chipotle, it can be the previous, you know, just the way Chipotle had a big run. I think Cava can too.”