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Started By
Message
CAVA long term
Posted on 7/17/24 at 8:18 pm
Posted on 7/17/24 at 8:18 pm
Excellent fast-casual dining…seems like a sure thing in the long run. Anyone else stacking shares?
5
Posted on 7/17/24 at 8:46 pm to Hightower
Way over valued.
P/E is 345.
P/E is 345.
This post was edited on 7/17/24 at 8:47 pm
Posted on 7/17/24 at 8:46 pm to Drizzt
A P/E of around 400
Posted on 7/17/24 at 9:48 pm to Hightower
It's going to go the way of Chipotle. People love it now because quality control is simpler at their current scale. They'll grow too large, the experience will worsen, shares will drop.
I can't fathom owning a fast casual stock as a growth stock long term.
I can't fathom owning a fast casual stock as a growth stock long term.
Posted on 7/17/24 at 9:55 pm to Thundercles
lol. Chipotle is one of the greatest compounders of our generation. I have eaten there once and it sucked but the stock is up 5,962% since IPO IN 06’. CAVA would be perfectly ok if it “goes the way of Chipotle”
Posted on 7/17/24 at 10:37 pm to thatguy777
quote:
CAVA would be perfectly ok if it “goes the way of Chipotle”
I mean as far as its service, perception, and position in the market. Chipotle created and perfected fast casual. Now it's a crowded space. It also opened at less than a dollar vs $45 for Cava, and really didn't take off until coronavirus upended the dining world and its now facing reality again. So if Cava goes up 6,000% it would end up around $2,700.
Posted on 7/17/24 at 10:51 pm to Thundercles
I have never traded CAVA or own the stock, so I do not really care about the company. CAVA would be ecstatic if it went the way of CMG, money is what matters and that would be a great return for any investor. Also, what does it matter the stock price? CMG market cap went from 1.3 bil on IPO day to 80 bil and still has a PE of 60. These younger growth companies PE rarely matter if they are operating correctly and growing the company at a fast rate. Again, I don't care what happens to the stock.
Posted on 7/18/24 at 12:07 am to thatguy777
Chipotle didn't open at under a dollar. It's IPO was in January 2006 at a price of $22, and finished it's first day of trading at $44.
Posted on 7/18/24 at 7:04 am to Hightower
Excellent play in the space. I own it btw. Bought at 42 so I’ve done well.
Rationale- they have unique position with Mediterranean food with very few competitors. They have a lot of room for growth. The food is good.
It’s overvalued for sure but it’s a growth play so I value on future earnings.
That said, it’s still fairly high so I expect some pullback.
Rationale- they have unique position with Mediterranean food with very few competitors. They have a lot of room for growth. The food is good.
It’s overvalued for sure but it’s a growth play so I value on future earnings.
That said, it’s still fairly high so I expect some pullback.
Posted on 7/18/24 at 7:51 am to Thundercles
quote:
I mean as far as its service, perception, and position in the market. Chipotle created and perfected fast casual. Now it's a crowded space.
My guess is there's also more of an "appetite" (excuse the pun) for Mexican fast casual than middle eastern.
Also, the experience at cava is so slow because they have so many options.
I love cava and they'll likely expand, but I don't see them reaching chipotle status.
Posted on 7/18/24 at 8:38 am to mooch1984
Are you factoring in the recent 50:1 split?
Posted on 7/18/24 at 9:29 am to Thundercles
What is this casual dining? Looks like a greek subway.
Posted on 7/18/24 at 11:13 am to GrizzlyAlloy
Do the math on what the enterprise value divides out by their resturaunt locations. It's wild.
I think development may be a challenge for them with their footprint and menu needs to be drastically less complex to truly scale and succeed from an experience standpoint.
Love the concept though. They should just copy and paste Chipotle.
I think development may be a challenge for them with their footprint and menu needs to be drastically less complex to truly scale and succeed from an experience standpoint.
Love the concept though. They should just copy and paste Chipotle.
Posted on 7/18/24 at 11:13 am to Thundercles
quote:
I can't fathom owning a fast casual stock as a growth stock long term.
Ever looked at WING?
Posted on 7/18/24 at 1:01 pm to STLhog
quote:
I think development may be a challenge for them with their footprint
They bought up Zoe's and are currently converting most/all of them over. That should help the short to medium term of development.
quote:
menu needs to be drastically less complex to truly scale
That I agree with. As a consumer I love the options, but there has to be massive loss from spoiled food.
Posted on 7/18/24 at 1:35 pm to mooch1984
(no message)
This post was edited on 8/8/24 at 5:38 pm
Posted on 7/18/24 at 3:19 pm to Thundercles
quote:Wrong again...
It also opened at less than a dollar vs $45 for Cava, and really didn't take off until coronavirus upended the dining world and its now facing reality again.
Posted on 7/18/24 at 4:58 pm to lsuconnman
quote:
They also had a six or 12 month run where customers were repeatedly getting sick from listeria contamination. Bankruptcy seemed more probable than $3000/share.
Always wary of any business with fresh lettuce.
All of the salad concepts terrify me.
Posted on 7/18/24 at 4:59 pm to lionward2014
quote:
They bought up Zoe's and are currently converting most/all of them over. That should help the short to medium term of development.
Only 200 units though.
They're going to need A LOT more to justify that valuation.
I think current assumptions had each resturaunt valued at over a billion which is obviously absurd.
Posted on 8/22/24 at 3:13 pm to Hightower
BIG quarter, $110+ in afters
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