Cava Group Inc. (NYSE:CAVA) is drawing renewed attention from Wall Street as analysts look beyond near-term headwinds and focus on the restaurant chain's long-term growth potential.
Telsey Advisory Group analyst Sarang Vora initiated coverage on Cava Group with an Outperform rating and a price forecast of $85.
Vora called the company an early-stage unit growth story with strong differentiation in the restaurant industry.
Differentiation And Brand Strength
The analyst noted that the Cava Group stands out through its authentic Mediterranean offerings, disciplined execution, and attractive unit economics.
He said Cava Group has a multi-year growth runway as it works toward opening 1,000+ restaurants by 2032, up from roughly 435 locations in 2025.
Vora expects average unit volumes to surge, driven by menu innovation, remodels under Project Soul, and technology upgrades like the Connected Kitchen initiative.
The analyst added that Cava Group's culture, focused on food quality, talent development, customer centricity, and hospitality, is likely to drive long-term upside.
Near-Term Headwinds Already Reflected
He acknowledged that Cava Group's business slowed in 2025 due to tough comparisons from strong prior product launches.
However, Vora said those pressures are more than reflected in the stock's roughly 40% decline over the past year.
The analyst expects the shares to outperform in 2026 and beyond as investors refocus on long-term unit growth and restaurant performance.
He also expects modest macro tailwinds from higher tax refunds, stable-to-lower gas prices, and lower interest rates.
Vora values Cava Group at $85 per share, based on applying a ~54x EV/EBITDA multiple to his 2026 EBITDA estimate of $181 million.
The analyst expects same-store sales to improve to the 4%–5% range in the second half of 2026 and 2027, up from a decline in late 2025.
He also expects restaurant-level margins to recover in the second half of 2026 and expand in 2027.
CAVA Price Action: Cava Group shares were up 2.28% at $71.19 at the time of publication on Friday, according to Benzinga Pro data.
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