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2 Reasons Cava Could Be a Standout Stock in 2024 and 2 Reasons It Could Sink

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Cava Group (NYSE: CAVA) was a standout initial public offering (IPO) stock when it went public last June in a dry IPO year. But it’s gone on to impress investors with continued growth and three quarters of positive net income.

Yet, buying Cava stock at this point is still a risk; it has a small store count and short history. But it also has an incredible opportunity, and management is demonstrating strong efficiency skills. Is it worth buying right now? Here are two reasons it could soar this year, and two reasons it could flop.

Cava, which aims to serve healthier Mediterranean-style food, opened 72 stores last year and had 309 stores in 24 states as of the beginning of 2024. It is seen by some as the next Chipotle Mexican Grill, which has become an incredible chain of more than 3,400 stores and has delivered wild market-beating gains over its lifetime.

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