TD Cowen analyst Andrew Charles reiterated a Buy rating and $100.00 price target on CAVA Group Inc (NYSE: CAVA).

The analyst commented: "We get the sense 2026 guidance pattern is appropriately taking the 2024 approach of leaving room for beats & raises throughout the year. We note CAVA is not letting the full amount of the sales guidance raise flow-thru to adj EBITDA in order to invest in labor and digital/data, that we expect to fuel future sales beats. Maintain #2 pick.

CAVA reported 1Q same store sales of 9.7% (6.8% traffic, 2.9% price, 1.5% mix), beating our 7.5% estimate, 6.2% Consensus Metrix (CM), and a wide range of investor expectations of 7%-9%. This led to 1Q adj. EBITDA of $61.7M, which beat our $57.8M estimate & $56.8M CM. Despite the sales beat, CAVA restaurant level margins of 25.1% aligned with 25.1% CM. Relative to consensus, other operating expenses were 80 bps unfavorable that was offset by 60 bps of favorable COGS and 20 bps of favorable occupancy. This was attributable to higher delivery expenses and other small one-time items."

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Shares of CAVA Group Inc closed at $78.12 yesterday.