Opinions Jim Cramer - Mad Money
CAVA GroupCAVAWAITNov 01, 2023
Jim Cramer - Mad MoneyStock price when the opinion was issued
As of Jun 23, 2026. Market Open.
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A great regional to national growth story. Up 340% over the last 2 years, though is -30% this year. He doubled-down in mid-March. They keep delivering strong numbers, growing its US store base, and revamping its loyalty program. Yesterday, they reported that business is difficult, though he thought the quarter was great: 10.8% same-store sales growth, missing the 11% estimate, revenue up 28% YOY, though EPS strongly beat. They raised their adjusted EBITDA and maintained same-store sales growth. Is a long-term play. Now is a buying opportunity. Caveat: it trades at a high multiple, so it will get hurt if there's another risk-off market. As long as their expansion continues, there's room to run.
Was upgraded today. Any consumer weakness is already baked into the stock. They reported last August 27% revenue growth, down only 1% from the previous quarter, and same-store sales growth of 18.2%. Their average unit (location) volume rose, too, and their profit margin rose 26.1%. Offered a full-year forecast that was mixed with same-store sales growth of 13-15% and profit margins of 23%, slower than the first half of this year. But EBITDA was encouraging. Maybe they're lowballing investors. They report next Tuesday. But don't anything until the lock-up period on insider selling expires in 6 weeks.