- Chipotle has a venture capital fund, and it’s investing in a small restaurant chain from Ohio that shares similarities with Cava.
- This isn’t necessarily a risk for Cava’s shareholders.
- Even if it is a risk, Cava can still outcompete and defend its market position.
A little competition never stopped Chipotle.
Up over 200% in 2024, restaurant company Cava Group (CAVA 0.78%) is one of the hottest stocks on the entire stock market, and for good reason. Its revenue was up a stunning 35% year over year in the second quarter of 2024, and its net profit soared 200% to $20 million. Moreover, with only 341 locations at the end of the quarter, this little restaurant company could have many more years of profitable growth ahead. No wonder investors are thrilled.
Cava is a restaurant chain specializing in Mediterranean cuisine. Instead of french fries, the company serves up pita chips. Other chains use cheddar cheese, and Cava has feta. And instead of meatballs made of ground beef, this chain uses lamb. All of this gives Cava a differentiated corner of the restaurant market…