Cava Group reports significant revenue and sales growth, but investors urged to consider high stock valuation.

Cava Group, a Mediterranean fast-casual restaurant chain, reported a significant 39% increase in revenue and 18% rise in same-store sales for Q3, ending October 6. With 352 locations, Cava's shares surged 243% in 2024, though they trade at a high price-to-sales ratio of around 20. Despite doubling net profit and achieving a 25% restaurant-level profit margin, investors are advised to be cautious due to the high valuation.

November 17, 2024
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