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CAVA Group, Inc. (CAVA): Among the High Growth Restaurant Stocks for 2025

We recently compiled a list of the 10 High Growth Restaurant Stocks For 2025. In this article, we are going to take a look at where CAVA Group, Inc. (NYSE:CAVA) stands against the other high growth restaurant stocks.

Morgan Stanley recently published a report on the restaurant industry, suggesting that the tough environment that the industry is currently facing may ease out in 2025, though only modestly. Restaurants will have to continue working on providing value meals to consumers who continue to struggle to balance their income and expenses.

A balanced job market could help keep labor costs steady. However, a political campaign against immigration could be a potential headwind for the industry. A growing emphasis on robotics to improve efficiency and customer service could also play a key role in the industry’s development this year, though it is too early to determine the financial implications of these moves.

We decided to shortlist a few stocks that we believe could benefit from an improving industry environment in 2025. To come up with the list of 10 restaurant stocks with a high growth rate, we only considered stocks that have grown by more than 15% in the last 5 years or since IPO and have a market cap of at least $1 billion.

A close-up image of a colorful salad platter with toppings and dressings.

CAVA Group, Inc. (NYSE:CAVA)

CAVA Group Inc. runs a restaurant chain that provides Mediterranean-inspired food and salad dressing, dips, and spreads in grocery stores. Moreover, it offers mobile ordering and online platforms.

It is a competitor of companies like Dominos, Dutch Bros, Yum China Holdings, and TXRH. All these companies are valued in a narrow range in terms of market cap. However, only Dutch Bros has a higher sales growth, more than double that of CAVA. CAVA is also valued at a premium compared to its competitors, but that can be pinned down to impressive growth and cash flows.

For instance, while the entire sector struggled to improve its cash flows, CAVA grew its operating cash flow by 110% YoY. This is the type of company that Wall Street loves, hence the rich valuation which shouldn’t scare investors. The stock is already up 8% YTD while most of its industry peers struggle to appreciate in price.

Overall CAVA ranks 10th on our list of the high growth restaurant stocks for 2025. While we acknowledge the potential of CAVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as CAVA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

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Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

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Early investors will be the ones positioned to ride the wave of this technological tsunami.

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AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…