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    CAVA 🚨 I took my time to do research and why cava is the next CHIPOTLE MEXICAN GRILL.


    Since their IPO was launched back in 2006 CMG traded over 100$ the first year.
    Cava went public to the market LAST YEAR, Since their IPO $CAVA has been up 60$ or 277.00%

    Why I’m comparing CAVA TO CMG?

    Because both sell the idea of giving the people healthy food, and people fall for it, since 2016 the restaurant chain had successfully opened around 330 and continues to expand the 2024 with another 50 stores… and in the long run 1000 by 2032, that’s huge if u pay attention what CMG did.

    Let’s talk about numbers. (2023)

    Full Year CAVA Revenue Growth of 59.8%

    Driven by CAVA Same Restaurant Sales Growth of 17.9%

    72 Net New CAVA Restaurant Openings During Fiscal 2023

    Full Year CAVA Restaurant-Level Profit Margin of 24.8%

    What CAVA has for us this 2024 ?

    CAVA Group anticipates the following for fiscal 2024:

    Net New CAVA Restaurant Openings: 48 to 52

    CAVA Same Restaurant Sales Growth 3.0% to 5.0%

    CAVA Restaurant-Level Profit Margin: 22.7% to 23.3%

    Pre-opening costs: $11.5 to $12.5 million

    Adjusted EBITDA: 86.0 to 92.0million

    Growth Trajectory: CMG experienced rapid growth post-IPO, maintaining strong performance over the years. CAVA's current growth rate and expansion plans suggest a similar trajectory, with significant revenue growth and a robust plan for increasing their store count.

    1. Market Position: Both companies capitalize on the trend towards healthier eating. This positioning has proven successful for CMG and appears promising for CAVA.

    2. Financial Metrics: CAVA's current restaurant-level profit margins and projected adjusted
      EBITDA indicate strong operational performance.
      While the margins are slightly lower than CMG's historical figures, they are indicative of a healthy and scalable business model.

    Future Outlook for CAVA

    For 2024, CAVA anticipates moderate same-restaurant sales growth and maintains a healthy restaurant-level profit margin despite high pre-opening costs. The projected adjusted EBITDA indicates continued profitability and operational efficiency, crucial for sustaining investor confidence and funding further expansion.

    https://i.redd.it/6ren5fqg903d1.jpeg

    Posted by Androcles_InTheSky

    View 48 Comments

    48 Comments

    4. Marko-2091 on

      I read the best DD somewhere else: CAVA is pumping because of a lot of people have FOMO that this is indeed the next Chipotle not because of fundamentals. It is a self-fulfilled prophecy. I bought stocks because I dont have balls.

    7. waxheartzZz on

      Going to Cava later today. I agree with everything in your post. Have fun getting rich!

    8. RCT2man on

      Wow what a revelation. Been on the bus since ipo. Get in loser. We’re going on a short trip to $100

    9. RedElmo65 on

      It’s not. I’ve seen the same shit post saying cava is the next CMG. Hasn’t moved one but for years.

    10. Icankickmyownass on

      Pfff. CBRL is changing the restaurant industry with their green chili cornbread. Ceo knows this is what the people want

    11. throwaway_0x90 on

      Assuming no accounting fraud, this is actually a solid long term hold. Just buy 10k+ of shares and come back in 2034.

      I’m looking at their locations(especially in CA) and menu.

      * [https://cava.com/locations#CA](https://cava.com/locations#CA)
      * [https://cava.com/menu](https://cava.com/menu)

      This is the kind of thing that works well in this state. At the minimum, you can probably [theta wheel](https://www.youtube.com/watch?v=dRYBh6dtxjY) this and recover your initial investment while letting premium-profits ride.

    12. flexidonas21 on

      The moment a monthly candle turns red, im dumping my life savings into puts. Thanks OP

    13. Smooth_Butterfly_707 on

      30% QoQ revenue growth on a fucking health bowl company trading at 400x PE now I’ve seen everything.

    14. kylestoned on

      > 72 Net New CAVA Restaurant Openings During Fiscal 2023

      > CAVA Group anticipates the following for fiscal 2024:

      >Net New CAVA Restaurant Openings: 48 to 52

      lol bullish on a growth company that is expected to open fewer new locations than the previous years?

      >Driven by CAVA Same Restaurant Sales Growth of 17.9%

      7.5% of that was due to increase in prices.

      >CAVA Same Restaurant Sales Growth 3.0% to 5.0%

      so their same restaurant sales growth is also expected to drop off a cliff?

    15. SlayZomb1 on

      Have you actually ate there? The type of food they serve is not nearly as easily accepted by the American population as Chipotle.

    16. killerbeeswaxkill on

      Insiders sold a huge amount of shares if they were bullish they’d of held.

    17. rameyjm7 on

      I can understand the comparison to Chipotle. There is one near my work, and I wouldn’t eat there. That said, I can see the long case. I’m not sure if I’m in on this one yet.

    19. regiusflaw on

      I bought in around $48 earlier this year and am planning on probably dumping my entire position tomorrow and buying some puts with the proceeds going into earnings. They are trading at 12-13x sales right now and are priced for….perfection? But it’s a restaurant stock, what really are we going to see over the coming quarters to justify the valuation? I love the food and company but I think it’s way overpriced. I’d like to reopen my position in the 50s

    20. GoTakeCoffee on

      So many people were trying to short / buy puts last September / October. The company only has 300 stores so far ![img](emote|t5_2th52|4258)

    21. AlabasterJefferson on

      Chipotle founders didn’t sell 70% of their shares in the first year of IPO. Cava expects slower same store growth and store openings next year.

      This is a brand that only booming because they are all over manhattan. There’s no penetration into suburban america.

    23. LNGU1203 on

      Shit. This sub thinks it’s a good buy. I’ll have to sell it now. Selling all of them…

    24. PlutosGrasp on

      Is Cava still not profitable ?

      Looks like it. Just a nominal 2m net profit which doesn’t make much sense considering operating income is at a loss.

    26. GiraffeAs_ on

      I been high on cava all year. Got in on some calls last week that expire after earnings and I’m up bigly

    30. Mattsam1 on

      Cava is a public company? They r pretty big here in st pete fl..i do uber eats

    31. kipdjordy on

      Son of a bitch. I was talking to my wife about this business this morning and now you posted about it. Damn

    32. KabraxisX on

      CAVA also gets picked up by scanners/screeners at $10B valuation and $100 stock price 🙂

    34. PrimaryAccording9162 on

      I wish I bought CAVA at IPO. They have a great product but they need to come to NorCal. If they dip I’ll gladly be long

    36. throwaway_20230328 on

      My regarded brain thought all this time this post is about CVNA and my puts were fucked.

    38. PorkChopExpress501 on

      I hate cava but that has nothing to do with the trade. They could save .30 cents a share if they didn’t overload the sauces on everything.

    39. DidItForButter on

      CAVA is not over-hyped. Once they figure out how to handle.lunch rushes, it’s game time.

      Fucking love CAVA

    40. iwantsdback on

      I did my DD. I looked at their online menu and noticed there was nothing that interested me and their prices are 10-20% more than my local favorite.

      Then I remembered that CAVA, like many chains, is going to get hammered by high labor costs in CA(and probably elsewhere soon).

      Then I remembered that there is a ton of competition in this space and that CAVA is one viral marketing campaign away from having a lot of its business taken by another large chain.

      Then I remembered this is WSB and the presence of this post means I should go short 100%.

    41. GlassAwfulEmpty on

      I ate at a CAVA the other week after passing by it for the past several months.

      I bought the cheapest bowl and a drink on the menu for like $20. I then preceded to spend the night blowing out the back of my toilet.

      This is the same experience I first had with Chipotle about 15 years ago. Bullish.

    42. TSF_Lacker on

      damn i really wanted to buy calls but wsb likes it, ig puts are the answer

    43. Dreadster on

      They just opened a Cava near me. Tried it once. It was more expensive and tasted worse than the other local Mediterranean options. I would not come back. Not bullish on the stock. Even compared to Chipotle, it costs like 50% more a bowl. Insanity.

    45. Kamikaze_Cash on

      I’ve got both cava and chipotle near my house. Cava is good food, no doubt about it. But it doesn’t have the “comfort food” quality of chipotle.

      It’s a place I’ll spend my money. But it’s not the drunk food chipotle is. I don’t think sales will match Chipotle’s.

    47. Swissschiess on

      I bought this because it’s exactly 10% of chipotle. 10% of stores 10% of market cap. I think they’ll expand super fast and stay in lockstep with chipotle store to market cap ratio

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