CAVA Group (NYSE:CAVA), the popular Mediterranean restaurant chain, has suffered a harsh reversal and moved into a technical bear market after plunging by 23% from its highest point this year. With its first-quarter earnings looming, will the stock bounce back?
CAVA Group To Release Q1 Earnings On May 19
CAVA Group stock plunged to $43.50 in November last year, and then started a major rally that pushed it to $98.8 in April. These gains extended after the company published its financial results, which showed that its revenue growth continued in the fourth quarter.
The revenue jumped by 21.2% in Q4 to $272.8 million as it opened 24 new restaurants during the quarter. Its same restaurant sales jumped to 0.5%, while its annual revenue rose to $1 billion for the first time ever. It also benefited from its investment in digital, with its sales rising by nearly 40%.
Most analysts boosted their CAVA stock forecast after the strong report and as the company continued expanding its footprint. UBS hiked its target from $75 to $85, while Citigroup hiked from $75 to $92. Benchmark, the most optimistic boostded the target …
This post was originally published here
