CAVA: The Next Chipotle?
Portfolio Pulse from The Science Of Hitting
CAVA (NYSE:CAVA) is being compared to Chipotle (NYSE:CMG) in its early stages, with similar financial performance and unit economics. CAVA's 2022 results showed restaurant-level EBIT margins of ~16%, and ~20% for CAVA branded units, higher than Chipotle's ~15% in 2003. Management believes there is potential for over 1,000 locations nationwide over the next decade.
July 10, 2023 | 3:38 pm
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NEUTRAL IMPACT
Chipotle's early financial performance and unit economics are being used as a benchmark for CAVA.
While Chipotle is mentioned as a benchmark for CAVA, the news does not directly impact Chipotle's current operations or financial performance.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
CAVA's financial performance and unit economics are comparable to Chipotle's early stages, with potential for significant expansion over the next decade.
The comparison to Chipotle's early stages and the potential for significant expansion over the next decade could make CAVA an attractive investment. The company's strong financial performance and unit economics further support this.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100