Cava’s stock sizzles after JPMorgan calls the chain a long-term buy

Cava shares were up nearly 6% Thursday morning after a JPMorgan upgrade fueled fresh optimism for the Mediterranean fast-casual chain.

JPMorgan analyst John Ivankoe upgraded the fast-growing food spot from neutral to overweight and reiterated his $110 price target. That implies a roughly 27% rally from the stock’s current levels. “We view the stock as a ‘buy now and own for the long-term,’” he wrote, emphasizing Cava’s US growth opportunity.

Cava expanded its footprint over the past year, adding 58 net new restaurants, bringing its total to 367. Ivankoe believes the chain will now easily top its original 1,000-store goal for 2032, predicting 2,000 locations by 2037 and 3,500 by 2043. 

While fast-food rivals struggle, Cava has been able to grow sales and keep prices reasonable. Since 2019, the CPI has increased 23% while Cava’s prices have gone up only 15%. Despite a phenomenal 162.5% surge in 2024, Cava shares have tumbled about 24% this year.