Jim Cramer - Mad Money
CAVA Group
CAVA-N
BUY ON WEAKNESS
May 16, 2025
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.
Nothing wrong with it, just profit taking now which is happening some high-flying stocks. The reason is insider selling, which makes him nervous though.
Is up 167% this year, though -15% the past month. Let it come in a little more--wait until January. Buy some, then let it come in further, then buy more. CAVA is very volatile.
It reports Tuesday and he expects another strong quarter. However, Wall Street has turned against momentum stocks, so it won't matter how good business is.
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.