Argus Lowers Cava Group (CAVA) PT to $76, Cites Realistic Calibration of Lowered Same-Store Sales Estimates

Cava Group Inc. (NYSE:CAVA) is one of the best up and coming stocks with huge upside potential. 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. Cava lowered its same-store sales growth estimates for the year, which the firm sees as a realistic calibration.

Earlier for Q2 2025, Cava Group’s revenue reached $278.2 million, which represented a 20.3% increase year-over-year. Cava reported an adjusted EBITDA of $42.1 million, which was a 22.6% increase from Q2 2024, and a net income of $18.4 million. The company’s restaurant-level profit margin was 26.3%. In this quarter, Cava also opened 16 new restaurants, which brought the total number of locations to 398.

However, the company anticipates that tariffs on some products could affect their costs. Still, Cava’s leadership stated that brand health scores, which include NPS and value scores, have improved. The company is also using technology like Hyphen and AI-camera-vision to improve operational efficiency and digital order accuracy.

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.