Should you buy Cava stock? (April 2025)

Published first at https://www.3minutebreakdowns.com Cava stock analysis. Ticker: $CAVA Revenue over the last 12 months comes to 964 million with 130 million of net income, 126 million of adjusted ebitda and 53 million of free cash flow. So Cava stock is valued at over 10 times revenue and over 80 ...

Published first at https://www.3minutebreakdowns.com Cava stock analysis. Ticker: $CAVA Revenue over the last 12 months comes to 964 million with 130 million of net income, 126 million of adjusted ebitda and 53 million of free cash flow. So Cava stock is valued at over 10 times revenue and over 80 times earnings. That sounds expensive but CAVA is executing its growth strategy extremely well. The company opened 58 new restaurants last year taking its total to 367 and growing revenues by 33%. Same store sales grew an impressive 13% and adjusted ebitda was up by 71%. Cava’s unit economics are also highly tuned with store level margins between 20-25% and an average payback period for new stores of under 2 years. But despite Cava’s impressive rise, investors need to tread carefully. Cava’s growth up until now has benefited from its acquisition of Zoes Kitchen and its ability to raise prices in a strong economy. President Trump’s recent tariff policies are now causing businesses a great deal of angst and threatening to throw a wrench in the global economy.