Needham has raised its 12-month price target on CAVA Group Inc (NYSE:CAVA) to $90.00 from $75.00 and reiterated a Buy rating on the shares. The stock was trading at $67.80, giving the company a market capitalization of $7.86 billion. InvestingPro analysis cited within the reporting indicates that, on a Fair Value basis, CAVA appears overvalued and is listed among names deemed Most Overvalued.
The upgrade from Needham follows CAVA's fourth-quarter performance and management's forward guidance for 2026, which the firm cites as evidence of the brand's strength. Management noted that comparable sales in the first-quarter-to-date have accelerated versus the fourth quarter and are running above the 3-5% range the company provided for 2026.
Needham highlighted a series of operational moves intended to support the chain's growth. Among the actions called out: the company has filled 60% of newly created Assistant General Manager positions and has reorganized field leadership in preparation for greenfield entries into the Midwest. These steps are framed as part of a broader effort to build the infrastructure and talent base necessary to scale the business.
CAVA’s stated expansion target is to reach 1,000 units by 2032, up from 439 restaurants at the end of fiscal 2025. Needham interprets the investments in people and management structure as differentiators that will help preserve new-unit productivity and lift enterprise-level return on invested capital as the chain grows.
Operational expansion is occurring against a backdrop of meaningful top-line momentum. The company reported 24% revenue growth over the last twelve months, a trend Needham and other analysts view as supporting the case for continued scalable growth.
For investors seeking more granular analysis, CAVA’s Pro Research Report is available on InvestingPro, where that same report is listed among more than 1,400 U.S. equities covered on the platform.
Needham reiterated its Buy rating and stated that the revised $90 price target reflects upside relative to its published estimates. The firm points to the combination of accelerating comparable sales, investments in operational capacity and a clear unit growth target as inputs to its view.
Recent financials and other analyst actions
In related disclosures, CAVA's fourth-quarter results included several notable items. The company reported revenue in excess of $1 billion for the first time on a trailing basis, and in the quarterly period posted adjusted earnings per share of $0.04 versus a consensus of $0.00. Quarterly revenue was $275.0 million, ahead of expectations of $228.3 million, representing a 21.2% increase from the same quarter a year earlier.
Same-restaurant sales increased by 0.5% in the quarter, a figure Needham and peers attribute to menu pricing and product mix changes despite a slight decline in guest traffic.
Other sell-side activity noted alongside Needham's move includes TD Cowen raising its price target on CAVA to $90 while maintaining a Buy rating on the basis of the company's optimistic 2026 guidance. Telsey Advisory Group also increased its target to $88, citing strong near-term trends and a constructive long-term view tied to the company's plan to exceed 1,000 restaurants by 2032.
Collectively, these analyst actions and the company's reported results underscore a consistent theme: management is pursuing aggressive unit growth and is investing in the people and systems needed to attempt to preserve margins and productivity as the platform expands.