It’s time to get back into this fast-casual stock, UBS says
Cava appears to be a growth story amid a difficult macroeconomic backdrop for the consumer, according to UBS. The bank upgraded its rating on the fast-casual restaurant chain to buy from hold. It also raised its price target on the stock to $90, indicating a nearly 18% gain from Tuesday’s close. Cava shares rallied in May after its first-quarter earnings report revealed same-store sales rose 9.7% year-over-year, beating analyst expectations. That growth, combined with Cava’s push to open 1,000 more locations by 2032, gives analyst Dennis Geiger confidence in the stock’s trajectory. “CAVA remains a compelling growth story, which is increasingly scarce in the sector in the current environment, w/ differentiated menu offerings, multiple sales catalysts, ongoing investments to support sustainability, and healthy new unit returns,” Geiger wrote in a Wednesday note. CAVA 1Y mountain Cava 1-year chart. Driving sales growth, he said, include the menu’s attractiveness to health-conscious consumers, marketing investments and menu innovation. Shares of Cava are still off about 50% since their December 2024 all-time highs. However, they’re up nearly 75% since their November 2025 lows and 30% year to date. The stock rose 1.1% in premarket trading Wednesday. Cava on Tuesday announced a push to hire 2,500 new team members in 2026. Geiger said the company’s investments in labor will help develop leaders who can support the new store growth Cava is pushing for. “We believe sustained outsized growth, without the overhang concerns of select growth peers, should support shares re-rating higher,” he wrote.
