Argus Lowers CAVA Group (CAVA) PT to $76 Despite Strong Q2 Revenue Growth

CAVA Group Inc. (NYSE:CAVA) is one of the best IPO stocks to buy and hold for 3 years. On September 2, Argus lowered the firm’s price target on CAVA Group to $76 from $110, while keeping a Buy rating on the shares. The company lowered its same-store sales growth estimates for the full-year 2025, which Argus agrees with.

Earlier in August, CAVA Group highlighted strong financial growth in Q2 2025, with revenue increasing by 20.3% year-over-year to $278.2 million. The company’s adjusted EBITDA grew by 22.6% over Q2 2024, reaching $42.1 million, while net income was $18.4 million. CAVA’s financial health appears strong, with $385.8 million in cash and investments and zero debt.

During Q2, CAVA successfully expanded its footprint and opened 16 net new restaurants to bring its total to 398 locations. The company also maintained an efficient operational model, evidenced by a restaurant-level profit margin of 26.3%. Culinary innovation remains a key focus, with new menu items like chicken shawarma and cinnamon sugar pita chips being introduced. However, the company faced challenges with its same-restaurant sales growth, which was 2.1%.

CAVA Group Inc. (NYSE:CAVA) owns and operates a chain of restaurants under the CAVA brand in the US. It also offers dips, spreads, and dressings through grocery stores.

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Disclosure: None. This article is originally published at Insider Monkey.