CAVA Stock Soars Over 30% in Past 3 Months; Q4 EPS Estimate Doubled as Analysts See Further Upside Potential

John Smith

The success of CAVA Group, Inc. stock was good on January 5, 2024. The CAVA stock closed at $41.15, which was 1.18% higher than the previous day. Since its IPO, the stock’s price has gone up and down a lot. It almost doubled in value on its first day of trading in June 2023, when it closed at $43.78 after exceeding the IPO’s price goal.

In the past 12 months, the stock’s price has been between $29.05 and $58.10. Analysts have set an average price goal of $42.75, which means it could go up 8.31%. The company’s expectation for EPS in Q4 2024 has been changed from $0.02 per share to $0.02 per share.

The following shows how the stock did at different times: The change in 5 days was -3.51%, the change in 1 month was 13.14%, the change in 3 months was 30.18%, and the change so far this year is -4.26%. The stock has gotten an average rating of “Moderate Buy” from analysts. The next earnings report from the company is set for August 13, 2024.

Factors That Contributed to the Significant Surge in CAVA Stock

There are a number of reasons why CAVA stock price went up so much when it first started selling in June 2023. The stock price of the company started at $22 and ended the day at $43.78, and it kept going up after hours, almost doubling in value from when it first went public.

The company’s unique and healthy food, strong unit economics, and strong loyalty program all helped the growth, which led to fast expansion and bright growth prospects.

Furthermore, investors were more confident in CAVA Group’s prospects because the market liked long-term growth stories and category-defining brands, especially in the fast-casual dining sector.

Has CAVA Stock Performance Changed After Its December 2023 IPO Lockup?

The price of CAVA stock has changed a lot since the end of its IPO lockup time in December 2023. After the lockup ended, the stock had a relief rise and went up over 72% above the IPO price. This showed that investors were very confident in the stock.

The stock was flat for a while, but it has since shown that it can bounce back, with a 13% rise from its initial public offering price and a price almost twice as high as its official IPO price of $22.

The company has a unique and healthy menu, strong unit economics, and a strong loyalty program, all of which have helped its growth chances, which has also helped its stock performance. When the lockup time ended, the stock price also went up, which wasn’t what some investors thought would happen.

Key Financial Indicators and Earnings Estimates that Investors Should Consider

Investors should look at key financial factors and earnings estimates when deciding whether to buy or sell CAVA Group stock. A big reason for this is the company’s strong loyalty program, which has 3.7 million users and contributed 25% of Q1 2023 sales, growing 56% year over year.

Important signs also include the company’s strong unit economics and sales growth, which reached $175.55 million in the quarter ending October 1, 2023. Analysts’ earnings estimates, like the $0.02 per share EPS estimate for Q4 2024, show how well the company is projected to do.

The market capitalization, enterprise value, price-to-sales ratio, and price-to-earnings ratio of the company are also important financial measures to look at.

Overview of CAVA Stock

Market Cap4.67B
Revenue (ttm)681.47M
Net Income (ttm)-7.62M
Shares Out113.59M
EPS (ttm)-0.07
PE Ration/a
Forward PE252.51
Ex-Dividend Daten/a
Previous Close40.67
Day’s Range39.81 – 42.42
52-Week Range29.05 – 58.10
Price Target48.22 (+17.18%)
Earnings DateFeb 6, 2024

Income Statement (Quarterly)

Financials in millions USD. Fiscal year is January – December

Quarter Ended2023-10-012023-07-092023-04-162022-12-252022-10-022022-07-102022-04-172021-12-26
Revenue Growth (YoY)26.06%27.21%27.72%
Cost of Revenue131.07127.46152.52112.85110.31136.87
Gross Profit44.4945.4350.5626.4125.6122.14
Selling, General & Admin24.4723.3229.0216.5516.2820.94
Other Operating Expenses17.2216.3523.79022.0917.6621.10
Operating Expenses41.6939.6752.8238.6333.9442.04
Operating Income2.85.76-2.25-12.23-8.34-19.89
Interest Expense / Income-3.96-0.70.03-
Other Expense / Income-0.12-0.12-0.17-0.19-0.2-0.26
Pretax Income6.876.58-2.1-11.92-8.17-19.98
Income Tax0.040.040.04-
Net Income6.836.54-2.14-11.89-8.23-20.02
Shares Outstanding (Basic)11428211111
Shares Outstanding (Diluted)118312111
Shares Change8770.61%2266.04%26.83%81.38%
EPS (Basic)0.060.23-1.30-8.96-6.23-15.42
EPS (Diluted)0.060.21-1.30-8.96-6.23-15.42
Free Cash Flow-9.11-11.95-13.42-19.46-22.39-24.65
Free Cash Flow Per Share-0.08-0.42-8.15-14.67-16.94-18.99
Gross Margin25.34%26.28%24.90%18.96%18.84%13.93%
Operating Margin1.59%3.33%-1.11%-8.78%-6.13%-12.51%
Profit Margin3.89%3.78%-1.05%-8.54%-6.06%-12.59%
Free Cash Flow Margin-5.19%-6.91%-6.61%-13.98%-16.47%-15.50%
Effective Tax Rate0.55%0.61%
EBITDA Margin8.23%9.59%5.31%-1.45%0.59%-4.29%
Depreciation & Amortization11.5310.7112.8610.028.9512.82
EBIT Margin1.66%3.40%-1.02%-8.64%-5.99%-12.35%
Source: Nasdaq

Balance Sheet (Quarterly)

Quarter Ended2023-10-012023-07-092023-04-162022-12-252022-10-022022-07-102022-04-172021-12-26
Cash & Equivalents340.4352.8522.7239.13140.33
Cash & Cash Equivalents340.4352.8522.7239.13000140.33
Cash Growth-72.12%
Other Current Assets4.834.538.426.154.36
Total Current Assets363.65374.6146.9958.15154.39
Property, Plant & Equipment613.12587.44548.09516.86194.94
Goodwill and Intangibles3.
Other Long-Term Assets4.915.025.585.553.61
Total Long-Term Assets621.33595.76556.97525.73207.8
Total Assets984.97970.38603.95583.88362.2
Accounts Payable13.5714.21814.3113.98
Current Debt36.3734.1132.8929.540
Other Current Liabilities6366.3955.1940.4737.75
Total Current Liabilities112.93114.7106.0984.3251.73
Long-Term Debt305.99299.47286.12285.190
Other Long-Term Liabilities0.330.40.480.5741.18
Total Long-Term Liabilities306.32299.87286.6285.7641.18
Total Liabilities419.25414.57392.69370.0892.91
Total Debt342.36333.58319.01314.730
Common Stock1,0151,01212.0412.449.51
Retained Earnings-449.71-456.55-463.08-460.94-402.53
Shareholders’ Equity565.72555.81-451.04-448.5-393.02
Net Cash / Debt-1.9619.27-296.3-275.61000140.33
Net Cash Per Share-0.020.62-179.91
Working Capital250.72259.92-59.1-26.17102.67
Book Value Per Share4.9819.59-273.87-337.66-536.69
Source: Nasdaq Data Link
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John Smith is a veteran stock trader with over 10 years of experience in the financial markets. He is a widely followed market commentator known for his astute analysis and accurate predictions. John has authored multiple bestselling books explaining complex market concepts in simple terms for novice investors looking to grow their wealth through strategic trading and long-term investments.
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