12 Best IPO Stocks to Buy in 2025

5. CAVA Group Inc. (NYSE:CAVA)

Average Upside Potential as of March 21: 41.74%

Number of Hedge Fund Holders: 47

CAVA Group Inc. (NYSE:CAVA) owns and operates a chain of restaurants under the CAVA brand in the US. It also offers dips, spreads, and dressings through grocery stores. It also provides online and mobile ordering platforms.

The company’s growth is fueled by its successful new restaurant openings, which are exceeding expectations and driving revenue increases. In 2024, the company opened 58 new restaurants, which contributed to a 35% revenue growth. These locations are performing well, with projected year-one average unit volumes (AUVs) of $2.3 million and year-two AUVs of $2.5 million. The company is seeing strong cash-on-cash returns from these new locations. It’s projected to be at least 40% in year two.

CAVA Group Inc. (NYSE:CAVA) is expanding into new markets, which include the Midwest and South Florida. The company is planning to open 62 to 66 new restaurants in 2025. This expansion is supported by its refined restaurant design and data-driven location selection. The company’s overall AUV increased to $2.9 million by the end of 2024, and same-restaurant sales increased by 21.2% in Q4 2024. For 2025, the company projects same-restaurant sales growth of 6% to 8%.