CAVA’s run from $33 in 2023 to nearly $88 in mid-2025 has captured the market’s attention. This impressive rally reflects strong brand momentum, expanding locations, and growing consumer demand for fresh Mediterranean fast casual dining. Retail traders and institutions have increasingly focused on CAVA, sparking active discussions on social media.
The company reported revenue of $328.5 million in Q1 2025, marking a 28.2% increase year-over-year. Same-store sales grew 10.8%, driven by a 7.5% traffic boost. Opening 15 new restaurants during the quarter pushed the total to 382 locations. Despite solid performance, CAVA’s full-year same-store sales guidance of 6% to 8% fell short of analyst expectations, triggering a 4% drop in after-hours trading.
Technically, CAVA trades between $84 and $88. A break above $88 could spark momentum toward the mid-90s, while support near $84 offers a safety net. The stock’s recent volatility reflects both optimism about growth and caution around margin pressures from inflation and rising interest rates.
Social sentiment remains mixed. Some investors see room to run, betting on continued expansion and strong consumer demand. Others view the current price as a peak in optimism, waiting to see if the company can meet or exceed its forecasts amid a challenging macro environment.
Whether the rally will continue or has reached its peak depends on upcoming sales execution, margin management, and broader economic shifts. Traders should watch key levels carefully and weigh both bullish and bearish signals before making decisions.
Sources
https://www.marketwatch.com/investing/stock/cava
https://www.fool.com/earnings/call-transcripts/2025/05/16/cava-cava-q1-2025-earnings-call-transcript/
https://www.barrons.com/articles/cava-stock-price-earnings-0cce9683