10 Best Performing Stocks in 2024

4. CAVA Group Inc. (NYSE:CAVA)

Year-to-Date Performance as of September 23: 203.23%

Market Cap as of September 23: $14.85 billion

Number of Hedge Fund Holders: 33

CAVA Group Inc. (NYSE:CAVA) operates a category-defining Mediterranean fast-casual restaurant brand that operates approximately 309 fast-casual CAVA restaurants across the US, excluding two locations operating under a licensing arrangement and digital kitchens. It’s known for its fresh, flavorful dishes, including customizable bowls, pita sandwiches, and salads.

The company expanded its US presence with 18 new locations in the second quarter (ending Q2 with 341 restaurants), driving a 14.40% increase in overall same-store sales, and plans to open 54-57 more by the end of the year. Despite the challenges faced by many restaurant stocks, it has demonstrated strong profitability, with a 27% profit margin in the second quarter. Overall, Q2 2024 recorded $233.50 million in revenue, up 35.05% from the year-ago period.

Its recent expansion into Chicago has been particularly successful, with three locations now open, contributing significantly to its overall growth. The recent launch of grilled steak has exceeded expectations and is driving sales growth. The social media campaign for this launch generated 8.6 million+ social impressions and 300 million+ PR impressions. The company offers high-quality Mediterranean cuisine at affordable prices and has differentiated itself from traditional restaurants.

Analysts anticipate that the company will achieve an 18.6% increase in earnings next year, highlighting the company’s strong market position and appeal to health-conscious consumers. CAVA Group Inc.’s (NYSE:CAVA) strategic focus on customer loyalty, operational efficiency, and team development positions it for continued growth and success.

Next Century Growth Small Cap Strategy stated the following regarding CAVA Group, Inc. (NYSE:CAVA) in its first quarter 2024 investor letter:

“CAVA Group, Inc. (NYSE:CAVA) is a fast casual restaurant chain serving authentic Mediterranean cuisine, featuring customizable bowls and pitas. CAVA currently owns and operates >300 stores, and the company targets a 15% plus new store growth rate. The intermediate goal is to have 1,000 stores by 2032 with plenty of opportunity to grow beyond that level. The company already delivers solid restaurant level margins >20% and they believe 3-5% same store sales growth is achievable over time. As the business matures, they should be able to leverage G&A expense which should lead to strong earnings growth over many years.”