Cava Group initiated with bullish view at TD Cowen, here’s why

TD Cowen initiated coverage of Cava Group with an Outperform rating and $46 price target. The analyst is bullish on Cava’s long-term story as the category leader in the “attractive” Mediterranean segment. The company’s “encouraging” new unit economics demonstrate portability and lend confidence to the targeted 1,000-plus U.S. stores by 2032, the analyst tells investors in a research note. The firm says its build-up of both its above-consensus 2024 same-store-sales and restaurant margins fuel conviction in a “continued beat and raise story.”