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WASHINGTON—Adam David Phillips, Chief Accounting Officer of Cava Group, Inc. (NYSE:CAVA), a fast-casual restaurant chain with a current market capitalization of $14.4 billion, recently executed a series of stock sales totaling $76,501. The transactions, which took place on January 27, involved the sale of 615 shares at prices ranging from $123.47 to $125.12 per share. According to InvestingPro data, CAVA’s stock has shown remarkable strength, delivering a 164% return over the past year.
These sales were conducted as part of a mandatory "sell to cover" arrangement to fulfill tax withholding obligations related to the vesting of restricted stock units (RSUs). As a result, Phillips’ holdings now stand at 10,884 shares, including unvested RSUs.
The transactions were part of a broader set of sales by employees of Cava Group, executed by a broker on their behalf, and were not discretionary trades by Phillips.
In other recent news, CAVA Group Inc . has been under the spotlight due to its robust financial performance and positive analyst attention. According to third-quarter results, the company reported an 18.1% increase in same-store sales and a 39% surge in revenue to $241.5 million. The adjusted EBITDA for the quarter was also impressive at $33.5 million.
Bernstein SocGen initiated coverage on CAVA with a Market Perform rating, noting the company’s impressive growth but advising caution due to the stock’s full pricing. Similarly, Piper Sandler, Loop Capital, and Morgan Stanley (NYSE:MS) maintained Neutral, Hold, and Equalweight ratings respectively, while adjusting their price targets for CAVA. CFRA and TD Cowen upgraded their ratings to Buy.
William Blair expressed optimism about CAVA’s growth, citing strong momentum and exceptional performance. The firm anticipates CAVA’s adjusted EBITDA to outperform initial guidance by nearly 40% for 2024 and estimates for 2025 and 2026 have been adjusted to 80-90% above initial expectations.
In the midst of these developments, CAVA’s management has provided guidance for the upcoming year, anticipating a minimum net unit growth of 17% for 2025 and expecting restaurant-level margins to remain in line with the levels projected for 2024. These recent developments highlight the company’s strong performance and potential in the restaurant industry.
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