1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Metrics vs Peers
3. Price Chart
4. Valuation
5. Offer Terms
6. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
CAVA
Listed on
2023-06-15
Sector
Consumer
Subsector
Hotels, Restaurants & Leisure
Offer Price
$22.00
first filed $17.00–$19.00Shares Offered
14.44M
111.39M
$2.5B
13.0%
Implied Upside vs Midpoint
Description
Our Mission To Bring Heart, Health, And Humanity To Food CAVA is the category-defining Mediterranean fast-casual restaurant brand, bringing together healthful food and bold, satisfying flavors at scale. Rooted in our rich Mediterranean heritage, we bring a timeless approach to modern wellness through our authentic cuisine and vibrant brand experience. Guided by our mission, we believe food is a unifier for a more diverse and inclusive world for our guests, Team Members, and our grower and rancher partners, where all are welcome at our table. We believe that consumers should not have to choose between taste and health – our innovative cuisine appeals to a wide variety of preferences, satisfying the modern consumer’s desires for flavorful, craveable, and nutritious food without compromise. Over the past 12 years, we have established ourselves as the only national player at scale in the fast-growing Mediterranean category, with more than twice the number of restaurants compared to our next largest competitor in the category. Our brand and our opportunity transcend the Mediterranean category to compete in the large and growing limited-service restaurant sector as well as the health and wellness food category. CAVA serves guests across gender lines, age groups, and income levels and benefits from generational tailwinds created by consumer demand for healthy living and a demographic shift towards greater ethnic diversity. We meet consumers’ desire to engage with convenient, authentic, purpose-driven brands that view food as a source of self-expression. The broad appeal of our food combined with these favorable industry trends drive our vast opportunity for continued growth. We have assembled an experienced and passionate team and made significant investments in differentiated digital and manufacturing infrastructure to drive powerful national growth and unit economics. Our strong results reflect our broad appeal and are highlighted by having: • Driven total revenue from $45.4 million in fiscal 2016 to $564.1 million in fiscal 2022, a 52.2% compound annual growth rate (“CAGR”), and from $159.0 million in the first quarter of 2022 to $203.1 million in the first quarter of 2023, an increase of 27.7%; • Driven CAVA Revenue from $41.2 million in fiscal 2016 to $448.6 million in fiscal 2022, a 49.0% CAGR, and from $112.0 million in the first quarter of 2022 to $196.8 million in the first quarter of 2023, an increase of 75.7%; • Achieved CAVA Same Restaurant Sales Growth for fiscal 2022 of 14.2% (when compared to fiscal 2021) and 23.6% (when compared to fiscal 2019), and 28.4% for the first quarter of 2023 (when compared to the first quarter of 2022); • Delivered net loss of $59.0 million in fiscal 2022 compared to $37.4 million in fiscal 2021, and $2.1 million in the first quarter of 2023 compared to $20.0 million in the first quarter of 2022, and delivered Adjusted EBITDA of $12.6 million in fiscal 2022 compared to $14.6 million in fiscal 2021, and $16.7 million in the first quarter of 2023 compared to $(1.6) million in the first quarter of 2022; and • Proven portability across 22 states and Washington, D.C., with a 82% suburban, 14% urban, and 4% specialty location mix as of April 16, 2023. --- CAVA Group, Inc. was originally incorporated in Delaware on February 27, 2015. Our principal offices are located at 14 Ridge Square NW, Suite 500, Washington, D.C. 20016. Our telephone number is 202-400-2920. We maintain a website at www.cava.com.
| Metric | Value | Peer median | Among peers | Trend |
|---|---|---|---|---|
EV / revenue | 4.3x | 6.0x | ||
Revenue growth | 12.8% | 20.8% | ||
Gross margin | 17.4% | 41.5% | ||
Operating margin | -10.6% | 7.3% | ||
Net margin | -10.5% | -0.2% | ||
Free cash flow margin | -17.4% | 1.7% | ||
Rule of 40 | 9.8% | 26.7% | ||
Net cash / market cap | 1.6% | -0.1% | ||
Debt / equity | 0.00 | 0.17 | ||
Current ratio | 0.69 | 0.64 | ||
Stock comp / revenue | 0.7% | 0.7% | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
▲ Priced at $22.00, 22% above the midpoint of the first filed range ($17.00–$19.00, 2023-06-05).
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2023-06-05 | S-1/A | $17.00–$19.00 | — | 14,444,444 | $260.0M |
| 2023-06-12 | S-1/A | $19.00–$20.00 | — | 14,444,444 | $281.7M |
| 2023-06-16 | 424B4 | — | $22.00 | 14,444,444 | $317.8M |
CAVA Group, Inc. income statement and balance sheet, FY Dec 2022 to FY Dec 2025, as reported in SEC filings.
| Metric | FY Dec 2022 | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Revenue | $564M | $729M | $964M | $1.2B |
| Gross profit | $98.0M | $180M | — | — |
| Operating income | ($59.8M) | $4.7M | $43.1M | $55.3M |
| Net income | ($59.0M) | $13.3M | $130M | $63.7M |
| Revenue growth | — | 29.2% | 32.3% | 22.4% |
| Gross margin | 17.4% | 24.7% | — | — |
| Operating margin | −10.6% | 0.6% | 4.5% | 4.7% |
| Net margin | −10.5% | 1.8% | 13.5% | 5.4% |
| Metric | FY Dec 2022 | FY Dec 2023after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Total assets | $584M | $984M | $1.2B | $1.4B |
| Total liabilities | $370M | $413M | $474M | $580M |
| Total equity | ($449M) | $571M | $696M | $780M |
| Cash & equivalents | $39.1M | $332M | $366M | $283M |