Was Jim Cramer Right About These 11 Stocks?

9. Cava Group, Inc. (NYSE:CAVA)

Number of Hedge Fund Holders: 41

In that older episode, a caller asked Jim Cramer about Cava Group, Inc. (NYSE:CAVA), a fast-casual restaurant chain that some see as a potential rival to Chipotle. The caller was curious about its valuation and future potential. Cramer responded enthusiastically, saying:

“I’m very bullish. I’m very bullish. I think the comparison with Chipotle is — and I rarely ever say this — reasonable. It’s not excessive, and I think Cava is really good.”

Cramer’s bullish take was justified as Cava is up 7.51% despite a recent pullback. Cava Group, Inc. (NYSE:CAVA) is expanding its footprint across the U.S. by modernizing Mediterranean fast-casual dining with bold flavors and an efficient digital-first approach.

Jim Cramer still views the stock as a long-term play. Here’s what he said on May 16:

“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.”