Cava stock on a tear as fast-casual players continue to outperform the industry

Yahoo Finance11-14

Fast-casual chains continue to outpace the wider food industry in growth as value conscious diners demand affordable prices and experiences. Mediterranean chain Cava (CAVA) beat Wall Street estimates...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2483807890?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/.or7Jcq2DK4FymhCDZkeAA--~B/aD0zNjQ4O3c9NTQ3MjthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/os/creatr-uploaded-images/2024-05/a8094e80-1dd0-11ef-b96d-41813b37d322","is_english":true,"pubTime":"2024-11-14 22:47","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2483807890","market":"us","top_or_hot":-1,"title":"Cava stock on a tear as fast-casual players continue to outperform the industry","media":"Yahoo Finance","content":"<div>\n<p>Fast-casual chains continue to outpace the wider food industry in growth as value conscious diners demand affordable prices and experiences. \nMediterranean chain Cava (CAVA) beat Wall Street estimates...</p>\n\n<a href=\"https://finance.yahoo.com/news/cava-stock-on-a-tear-as-fast-casual-players-continue-to-outperform-the-industry-144702540.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Cava stock on a tear as fast-casual players continue to outperform the industry</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCava stock on a tear as fast-casual players continue to outperform the industry\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-14 22:47 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/cava-stock-on-a-tear-as-fast-casual-players-continue-to-outperform-the-industry-144702540.html><strong>Yahoo Finance</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Fast-casual chains continue to outpace the wider food industry in growth as value conscious diners demand affordable prices and experiences. \nMediterranean chain Cava (CAVA) beat Wall Street estimates...</p>\n\n<a href=\"https://finance.yahoo.com/news/cava-stock-on-a-tear-as-fast-casual-players-continue-to-outperform-the-industry-144702540.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"QSR","symbol_name":"餐饮品牌国际","start_time":0,"source_url":"https://finance.yahoo.com/news/cava-stock-on-a-tear-as-fast-casual-players-continue-to-outperform-the-industry-144702540.html","article_id":"2483807890","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/.or7Jcq2DK4FymhCDZkeAA--~B/aD0zNjQ4O3c9NTQ3MjthcHBpZD15dGFjaHlvbg--/https://s.yimg.com/os/creatr-uploaded-images/2024-05/a8094e80-1dd0-11ef-b96d-41813b37d322"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483807890","pubTimestamp":1731595622,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Fast-casual chains continue to outpace the wider food industry in growth as value conscious diners demand affordable prices and experiences.Mediterranean chain Cava  beat Wall Street estimates Tuesday afternoon, with same-store sales jumping 18.1%, compared to 12.39% expected. The stock vaulted over $172 per share — an all-time high — on Wednesday, before giving up the gains and closing around $147. Shares of Cava are up 261% in 2024.\"That value proposition [is] really beyond price,\" CEO Brett Schulman told Yahoo Finance. Schulman pointed to Cava's investment in digital and in-store experiences, people's shifting preferences for healthier food, and the company's efforts to keep the average bowl in the $13 to $15 range as factors in its success.TD Cowen analyst Andrew Charles wrote in a client note that Cava's price increase, of roughly 15% compared to 2019, \"significantly trails\" the 25% to 30% hikes by most fast-casual peers. In the quarter, the chain's foot traffic was up 10.3% year ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"QSR":"餐饮品牌国际","CAVA":"CAVA Group Inc.","SG":"Sweetgreen, Inc.","MCD":"麦当劳","YUM":"百胜餐饮集团","SHAK":"Shake Shack Inc"},"translate_title":"随着快速休闲玩家的表现继续跑赢行业，Cava股价大幅上涨","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CAVA":0.9,"MCD":0.9,"QSR":0.9,"SG":0.9,"SHAK":0.9,"YUM":0.9},"content_text":"Fast-casual chains continue to outpace the wider food industry in growth as value conscious diners demand affordable prices and experiences. \nMediterranean chain Cava (CAVA) beat Wall Street estimates Tuesday afternoon, with same-store sales jumping 18.1%, compared to 12.39% expected. The stock vaulted over $172 per share — an all-time high — on Wednesday, before giving up the gains and closing around $147. Shares of Cava are up 261% in 2024. \n\"That value proposition [is] really beyond price,\" CEO Brett Schulman told Yahoo Finance. Schulman pointed to Cava's investment in digital and in-store experiences, people's shifting preferences for healthier food, and the company's efforts to keep the average bowl in the $13 to $15 range as factors in its success. \nTD Cowen analyst Andrew Charles wrote in a client note that Cava's price increase, of roughly 15% compared to 2019, \"significantly trails\" the 25% to 30% hikes by most fast-casual peers. In the quarter, the chain's foot traffic was up 10.3% year over year, while its steak option contributed to order prices increasing by 7.9%.\nFellow fast-casual player and burger chain Shake Shack (SHAK) posted same-store sales growth of 4.4% in its latest quarter, while salad chain Sweetgreen (SG) saw a 6% jump. \nAs the cost of dining rises, fast food players have been struggling to compete on value. In its latest quarter, McDonald's (MCD) same-store sales grew 0.3% year over year in the US.\nRestaurant Brands International's (QSR) US business clocked same-store sales declines across the board, with Burger King down 1.5%, Popeyes down 0.8%, and Firehouse Subs down 3.7%\n\nYum Brands' (YUM) three brands posted a mixed bag in the US: Taco Bell's same-store sales increased 4%, while KFC business saw its sales drop 7% and Pizza Hut saw a 1% decline. \nCharles said Cava \"continues to benefit from the consumer preference shift from quick service to fast casual as middle-income consumers increasingly view fast casual as a better value for money.\" \n\"CAVA is at a clear tipping point as the leader of fast-casual Mediterranean,\" William Blair analyst Sharon Zackfia wrote in a note.  \nIn Q3, Shake Shack beat Wall Street's estimates with its same-store sales, led by an increase in foot traffic, up 30 basis points year over year, while the average check jumped 4%. \n\"We've actually seen growth amongst all cohorts ... we're one of the few brands whose value perception has actually improved over the last year,\" Shake Shack CEO Rob Lynch told Yahoo Finance.\nThe fast food giants have been aggressively pushing out promotions to win on price, but Shake Shack is competing by leaning into premium products like the return of the black truffle menu. \nLynch plans to avoid price increases in 2025 as consumers grow fatigued by sticky inflation. \n\"We don't want to take price unless we have to. ... We're not predicting as much inflation heading into 2025,\" Lynch said. \nShake Shack shares are up more than 72% year to date.  \nFor Sweetgreen, its same-store sales growth came from a 4% lift from menu prices and 2% increase in traffic and mix. \n\"We are laser-focused on menu relevancy and reinforcing our culinary and supply chain ethos to build traffic and check over the long term,\" Sweetgreen CEO Jonathan Neman said on its earnings call.  \nShares have shot up 238% year to date, and there's more room to run, per Zackfia. The chain is leaning into its Infinite Kitchen concept, which uses a row of automated dispensers to create the salad bowls. There are currently ten locations, and the pilot has shown improvement in speed and product quality, Neman said. \nThe company's co-founder Nicolas Jammet struck an upbeat tone on the rollout of the automation technology on Yahoo Finance's Opening Bid podcast (listen in below). \n\n\"While Sweetgreen's shares have more than tripled so far this year to an enterprise value of 5.2 times our 2025 sales estimate, we remain bullish on the company’s expanding appeal and game-changing dynamics of the Infinite Kitchen,\" Zackfia wrote to clients.\nHowever, not everyone is as optimistic after huge run-ups. Citi analyst Jon Tower cited a Neutral, high-risk rating on Sweetgreen and Cava. \n\n\n\n  Customers arrive at a Cava restaurant in New York City, U.S., June 22, 2023. REUTERS/Brendan McDermid\n \n\n  REUTERS / Reuters\n \n\nFor Cava, downside risks include difficulty expanding its footprint, as commercial real estate faces challenges in a higher interest rates environment or a potential downturn in the economy. The chain could also hit a \"hiccup with new sales levers\" like its steak, and loyalty system.\nSweetgreen's risks include potential \"disruptions in sales\" in urban markets like New York City, supply chain disruptions that could hit new store openings, and \"elevated risk to sales related to a foodborne illness outbreak relative to other brands in the restaurant space given the brand's outsized exposure to produce.\" \nJPMorgan analyst Rahul Krotthapalli pointed to Shake Shack's \"premium/specialty burger category [that] inherently risks price point-driven frequency limitation,\" meaning consumers might come less since it costs more.\nHe added, \"The brand believes to have found success in changing this perspective for its occasional consumer through the popular but risky (as it trains customers to often wait for promos) Hi-Low pricing strategy.\" \n—\nBrooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.\nClick here for all of the latest retail stock news and events to better inform your investing strategy","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"2","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483807890"}