UBS upgrades CAVA to Buy, citing strong growth and resilience in tough market conditions.

UBS has upgraded CAVA Group to a Buy rating, highlighting the Mediterranean fast-casual chain's strong same-store sales resilience and growth potential despite a challenging macroeconomic environment. UBS expects CAVA to exceed its 2026 same-store sales guidance with potential upside driven by health-conscious consumer appeal, menu innovation, marketing efforts, and operational improvements. The firm projects over 20% revenue growth and 25% EBITDA growth in the coming years, supported by rapid unit expansion and strong new store performance. UBS raised the price target to $90, reflecting confidence in CAVA's sustainable growth and premium valuation.