Stifel and Truist Rate CAVA Group (CAVA) Buy on Strong Outlook

CAVA Group, Inc. (NYSE:CAVA) is one of the 13 Best Fast Food Stocks to Buy. On December 12, Stifel reaffirmed its Buy rating on CAVA Group, Inc. (NYSE:CAVA) with a $75 price target after talks with the company’s leadership about 2026 sales drivers and operational performance.

Stifel pointed out that even with some recent softness in comparable sales, which was partly due to record new-unit openings, the underlying demand for CAVA Group, Inc.’s (NYSE:CAVA) Mediterranean fast-casual food stays strong. The research firm highlighted the company’s solid average unit volumes and “exceptional cash returns” from new locations. Stifel also noted CAVA Group, Inc.’s (NYSE:CAVA) investments in management talent and proactive maintenance to fuel growth in the future.

The research firm also noted that initiatives including new menu items like salmon and system-wide assistant general manager training could pressure margins temporarily. However, these investments will help CAVA Group, Inc. (NYSE:CAVA) build scalability in the long term. Stifel also sees big potential for the company to ramp up paid advertising to support customer penetration.

Previously, on December 4, Truist Securities initiated coverage on CAVA Group, Inc. (NYSE:CAVA), giving the stock a Buy rating and setting the price target at $66. The research firm sees the company as the leading player in the Mediterranean fast-casual restaurant industry. Truist Securities expects CAVA Group, Inc. (NYSE:CAVA) to stay among the fastest-growing restaurant chains.

The firm noted that increased brand awareness, menu innovation, digital penetration, loyalty programs, catering, and improved service speeds and capabilities as potential drivers of same-store sales growth.

CAVA Group, Inc. (NYSE:CAVA) is an American 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.