From Yahoo Finance: 2025-06-29 12:53:00

CAVA Group, Inc. (NYSE:CAVA) is recommended as one of the best consumer cyclical stocks to buy. Stifel maintained a Buy rating on CAVA shares but lowered the price target to $125 from $175 on June 18. The firm cited challenging comparisons and reduced its second-quarter same-restaurant sales growth projection to 5.5%.

Despite the adjustment, CAVA Group (NYSE:CAVA) predicts a three-year stack in the high 30% range, aligning with Stifel’s full-year same-restaurant sales growth estimate of around 7%. Stifel identified average unit volume growth, margin expansion, and unit growth as key drivers of CAVA’s longer-term valuation.

CAVA Group, Inc. (NYSE:CAVA) is a fast-casual Mediterranean restaurant chain known for its adaptable meals. It operates company-owned locations and offers branded retail items through a vertically integrated model. While CAVA shows investment potential, some AI stocks may offer greater upside potential with less downside risk.

For more insights on potential investments, consider exploring the 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds. Disclosure: None.

Read more: CAVA Group (NYSE:CAVA) Among Top Consumer Cyclical Picks Despite Lowered Q2 Outlook