There aren’t many fast food chains that investors treat like royalty. Most of them are just trying not to get clowned on TikTok for serving $18 Big Macs and forgetting to salt the fries. But every once in a while, a chain rises above the fryer fumes and fountain drink stickiness to become something more… a lifestyle brand.

I’m talking about Cava. The Mediterranean fast-casual chain that practically yells, “I wear Lululemon, I do yoga, and I drink $12 juice with charcoal in it because I heard a podcast say it’s good for me.” It’s Chipotle with hummus, Sweetgreen for people who like bread, and the lunch destination of choice for anyone who counts macros but insists they’re “intuitive eating.” When Cava IPO’d last June, it was way more than a restaurant stock… it was the next big thing. And Wall Street bought in hard. The stock soared from $22 to $172 in five months. But, as with most hot IPOs, the come-up was a little too steep. Now it’s trading around $94, down roughly 18% on the year. And yet, while the stock may have lost some shine, the business is still proving itself.

Last quarter, while the rest of the restaurant world blamed everything from tariffs to Jerome Powell for their performance, Cava quietly posted numbers that made analysts double-check their calculators. Same-store sales rose 10.8%, traffic was up 7.5%, and revenue surged 28% to $332 million. Oh, and they reported $0.22 earnings per share… absolutely blowing the doors off of the $0.02 estimate.

CFO Tricia Tolivar explained the magic: diners are trading up from fast food and down from sit-down joints… landing squarely in Cava’s Goldilocks zone. People want better food without needing to fake laugh at a waiter’s joke or leave a 20% tip. So they’re splurging on lamb, pita chips, and cold-pressed juice while still feeling like they’re being fiscally responsible. I know what you’re thinking: “So why is the stock down 5% today?” Let me answer that for you... I don't know. But the dip is probably because Cava stuck with its original full-year same-store sales forecast of 6–8%. No upgrades. No razzle-dazzle. Just steady growth, which isn't super exciting.

That wasn’t enough for investors who were expecting Cava to pop a bottle and scream “we’re going to the moon.” Instead, they got a realistic plan and a responsible tone. But analysts aren’t backing down. JPMorgan bumped their price target to $115, telling investors to “buy now and own for the long term.” Stifel went even harder, keeping their $175 target intact, clearly buying the same hype as someone who just discovered Greek food.

Cava currently has 382 restaurants and plans to open up to 68 more this year. But analysts think this is just the warm-up. Some expect Cava to eventually scale to as many as 3,500 U.S. locations… putting it in Chipotle territory. And unlike most young restaurant chains, Cava’s already producing free cash flow, has a strong balance sheet, and isn’t jacking up prices like a desperate used car lot.

The stock may have taken a breather, but the brand is still hot. In addition to grain bowls… Cava's selling status. And as long as people want to look like they eat clean and live well (while spending $14 on lunch), analysts think Cava’s going to keep dishing out growth.

Stock.News does not have positions in companies mentioned.