Cava's Shares Are Up 200% YTD. Here's Why Wall Street Says the Fast-Casual Mediterranean Chain Is the Next Chipotle

Cava has seen significant growth since its IPO in 2023. It posted a profit in its first quarterly report, consistently outperformed Wall Street's earnings expectations, and continues to draw comparisons to Chipotle Mexican Grill. Cava’s competitive pricing strategy has helped maintain customer appeal, while other chains like McDonald's raised prices significantly more. CEO Brett Schulman emphasized that Cava’s value resonates with higher-income consumers trading down from full-service restaurants. Investors see Cava's efficient, Chipotle-like model as a key factor in its success. Cava shares are up over 200% year-to-date.