Should You Buy Cava Stock Right Now?

Every restaurant investor is looking for the next Chipotle Mexican Grill (NYSE: CMG) . The fast-casual restaurant chain has posted phenomenal returns for investors after taking its healthy Mexican fare across the U.S.

The company currently has a market capitalization of $86 billion, making it one of the largest restaurant brands in the world. The success of Chipotle has spawned a lot of fast-casual restaurant copycats. One of the most successful is Cava Group ( CAVA -0.

05% ) , which has a similar concept to Chipotle but with Mediterranean food. It is growing its restaurant count like gangbusters and went public through an initial public offering ( IPO ) less than a year ago. Should you buy Cava stock for your portfolio right now? Mediterranean fast casual? Mediterranean fast casual Cava does build-your-own grain bowls and sandwich wraps in a similar fashion to Chipotle.

But instead of Mexican food, it does Mediterranean wraps with falafel, hummus, and pita bread. In 2023, Cava locations did $2.6 million in average unit volumes (AUVs) with 24.

8% restaurant-level profit margins. This novel concept seems to be resonating with customers, as foot traffic per store increased 10% year over year in 2023. At the end of 2023, Cava had 309 restaurant units.

Last year, it generated $717.1 million in revenue, up an astonishing 60% from 2022. The company is expanding rapidly with this restaurant concept, and doing so while still generating a profit.

Cava Group net income was $13.9 million .