Cava a Buy as Same-Store Sales Start to Sizzle? | The Motley Fool

Cava Group's shares advanced after the Mediterranean-cuisine operator posted stronger first-quarter results and nudged up its full-year guidance. Comparable-store sales rose 9.7% in Q1, driven by a 6.8% increase in traffic, while a 1.4% January price uptick supported margins. Revenue climbed to $434.4 million, up 32% year over year, as the company opened 20 new locations to bring total to 459 stores, a 20% rise from a year ago. Restaurant-level margins were 25.1% in the quarter, unchanged year over year. The firm lifted 2026 openings guidance to 75-77 stores and reiterated a goal of at least 1,000 restaurants by 2032. Adjusted EBITDA rose 38% to $61.7 million; operating cash flow was $64.1 million and free cash flow $15.5 million. With 459 locations and about $3 million in average unit volume, the stock trades at roughly seven times store-level revenue, signaling a strong growth runway but a rich valuation that warrants careful consideration of the risk-reward for new buyers.