CAVA Group recommended as top consumer cyclical stock despite lowered Q2 outlook.

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.

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