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 Cap | 4.67B |
| Revenue (ttm) | 681.47M |
| Net Income (ttm) | -7.62M |
| Shares Out | 113.59M |
| EPS (ttm) | -0.07 |
| PE Ratio | n/a |
| Forward PE | 252.51 |
| Dividend | n/a |
| Ex-Dividend Date | n/a |
| Volume | 1,303,580 |
| Open | 40.21 |
| Previous Close | 40.67 |
| Day’s Range | 39.81 – 42.42 |
| 52-Week Range | 29.05 – 58.10 |
| Beta | n/a |
| Analysts | Buy |
| Price Target | 48.22 (+17.18%) |
| Earnings Date | Feb 6, 2024 |
Income Statement (Quarterly)
Financials in millions USD. Fiscal year is January – December
| Quarter Ended | 2023-10-01 | 2023-07-09 | 2023-04-16 | 2022-12-25 | 2022-10-02 | 2022-07-10 | 2022-04-17 | 2021-12-26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 175.55 | 172.89 | 203.08 | – | 139.26 | 135.92 | 159.01 | – |
| Revenue Growth (YoY) | 26.06% | 27.21% | 27.72% | – | – | – | – | – |
| Cost of Revenue | 131.07 | 127.46 | 152.52 | – | 112.85 | 110.31 | 136.87 | – |
| Gross Profit | 44.49 | 45.43 | 50.56 | – | 26.41 | 25.61 | 22.14 | – |
| Selling, General & Admin | 24.47 | 23.32 | 29.02 | – | 16.55 | 16.28 | 20.94 | – |
| Other Operating Expenses | 17.22 | 16.35 | 23.79 | 0 | 22.09 | 17.66 | 21.1 | 0 |
| Operating Expenses | 41.69 | 39.67 | 52.82 | – | 38.63 | 33.94 | 42.04 | – |
| Operating Income | 2.8 | 5.76 | -2.25 | – | -12.23 | -8.34 | -19.89 | – |
| Interest Expense / Income | -3.96 | -0.7 | 0.03 | – | -0.12 | 0.03 | 0.34 | – |
| Other Expense / Income | -0.12 | -0.12 | -0.17 | – | -0.19 | -0.2 | -0.26 | – |
| Pretax Income | 6.87 | 6.58 | -2.1 | – | -11.92 | -8.17 | -19.98 | – |
| Income Tax | 0.04 | 0.04 | 0.04 | – | -0.03 | 0.06 | 0.04 | – |
| Net Income | 6.83 | 6.54 | -2.14 | – | -11.89 | -8.23 | -20.02 | – |
| Shares Outstanding (Basic) | 114 | 28 | 2 | 1 | 1 | 1 | 1 | 1 |
| Shares Outstanding (Diluted) | 118 | 31 | 2 | – | 1 | 1 | 1 | – |
| Shares Change | 8770.61% | 2266.04% | 26.83% | 81.38% | – | – | – | – |
| EPS (Basic) | 0.06 | 0.23 | -1.30 | – | -8.96 | -6.23 | -15.42 | – |
| EPS (Diluted) | 0.06 | 0.21 | -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 Margin | 25.34% | 26.28% | 24.90% | – | 18.96% | 18.84% | 13.93% | – |
| Operating Margin | 1.59% | 3.33% | -1.11% | – | -8.78% | -6.13% | -12.51% | – |
| Profit Margin | 3.89% | 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 Rate | 0.55% | 0.61% | – | – | – | – | – | – |
| EBITDA | 14.44 | 16.59 | 10.78 | – | -2.02 | 0.81 | -6.82 | – |
| EBITDA Margin | 8.23% | 9.59% | 5.31% | – | -1.45% | 0.59% | -4.29% | – |
| Depreciation & Amortization | 11.53 | 10.71 | 12.86 | – | 10.02 | 8.95 | 12.82 | – |
| EBIT | 2.92 | 5.88 | -2.08 | – | -12.04 | -8.14 | -19.64 | – |
| EBIT Margin | 1.66% | 3.40% | -1.02% | – | -8.64% | -5.99% | -12.35% | – |
Balance Sheet (Quarterly)
| Quarter Ended | 2023-10-01 | 2023-07-09 | 2023-04-16 | 2022-12-25 | 2022-10-02 | 2022-07-10 | 2022-04-17 | 2021-12-26 |
|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | 340.4 | 352.85 | 22.72 | 39.13 | – | – | – | 140.33 |
| Cash & Cash Equivalents | 340.4 | 352.85 | 22.72 | 39.13 | 0 | 0 | 0 | 140.33 |
| Cash Growth | – | – | – | -72.12% | – | – | – | – |
| Receivables | 12.69 | 11.88 | 11.52 | 7.74 | – | – | – | 6.06 |
| Inventory | 5.73 | 5.36 | 4.34 | 5.14 | – | – | – | 3.64 |
| Other Current Assets | 4.83 | 4.53 | 8.42 | 6.15 | – | – | – | 4.36 |
| Total Current Assets | 363.65 | 374.61 | 46.99 | 58.15 | – | – | – | 154.39 |
| Property, Plant & Equipment | 613.12 | 587.44 | 548.09 | 516.86 | – | – | – | 194.94 |
| Goodwill and Intangibles | 3.3 | 3.3 | 3.3 | 3.33 | – | – | – | 9.25 |
| Other Long-Term Assets | 4.91 | 5.02 | 5.58 | 5.55 | – | – | – | 3.61 |
| Total Long-Term Assets | 621.33 | 595.76 | 556.97 | 525.73 | – | – | – | 207.8 |
| Total Assets | 984.97 | 970.38 | 603.95 | 583.88 | – | – | – | 362.2 |
| Accounts Payable | 13.57 | 14.2 | 18 | 14.31 | – | – | – | 13.98 |
| Current Debt | 36.37 | 34.11 | 32.89 | 29.54 | – | – | – | 0 |
| Other Current Liabilities | 63 | 66.39 | 55.19 | 40.47 | – | – | – | 37.75 |
| Total Current Liabilities | 112.93 | 114.7 | 106.09 | 84.32 | – | – | – | 51.73 |
| Long-Term Debt | 305.99 | 299.47 | 286.12 | 285.19 | – | – | – | 0 |
| Other Long-Term Liabilities | 0.33 | 0.4 | 0.48 | 0.57 | – | – | – | 41.18 |
| Total Long-Term Liabilities | 306.32 | 299.87 | 286.6 | 285.76 | – | – | – | 41.18 |
| Total Liabilities | 419.25 | 414.57 | 392.69 | 370.08 | – | – | – | 92.91 |
| Total Debt | 342.36 | 333.58 | 319.01 | 314.73 | – | – | – | 0 |
| Common Stock | 1,015 | 1,012 | 12.04 | 12.44 | – | – | – | 9.51 |
| Retained Earnings | -449.71 | -456.55 | -463.08 | -460.94 | – | – | – | -402.53 |
| Shareholders’ Equity | 565.72 | 555.81 | -451.04 | -448.5 | – | – | – | -393.02 |
| Net Cash / Debt | -1.96 | 19.27 | -296.3 | -275.61 | 0 | 0 | 0 | 140.33 |
| Net Cash Per Share | -0.02 | 0.62 | -179.91 | – | – | – | – | – |
| Working Capital | 250.72 | 259.92 | -59.1 | -26.17 | – | – | – | 102.67 |
| Book Value Per Share | 4.98 | 19.59 | -273.87 | -337.66 | – | – | – | -536.69 |
Sources:
- https://www.marketbeat.com/instant-alerts/nyse-cava-analyst-earnings-estimates-2023-12-25/
- https://www.tipranks.com/stocks/cava
- https://seekingalpha.com/news/4045666-relief-rally-for-cava-group-after-ipo-lockup-expires-without-any-fireworks
- https://www.barchart.com/stocks/quotes/CAVA/technical-analysis
- https://www.nasdaq.com/articles/cavas-stock-just-did-something-investors-werent-expecting
- https://www.marketwatch.com/investing/stock/cava
- https://investor.cava.com/stock-info/default.aspx
- https://www.marketbeat.com/instant-alerts/nyse-cava-consensus-analyst-rating-2024-01-01/
- https://www.bloomberg.com/news/articles/2023-06-15/restaurant-chain-cava-soars-in-debut-after-318-million-ipo