KeyBanc Starts CAVA Coverage With Overweight Rating

CAVA Group, Inc. (NYSE:CAVA) is one of the 11 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.

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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.

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Disclosure: None. This article is originally published at Insider Monkey.