Craving CAVA Stock (NYSE:CAVA) | Seeking Alpha

Cava Restaurant Chain Files For Initial Public Offering

Mario Tama

A True Peter Lynch-Style Investment

A couple months ago, I published my flagship, introductory note on CAVA Group, Inc. (NYSE:CAVA). If you’ve not already, I would highly encourage you to read it prior to reading further

TTM 12-month revenue [A]

$790 million

Potential Free Cash Flow Margin [B]


Average diluted shares outstanding [C]

~120 million

Free cash flow per share [ D = (A * B) / C ]


Free cash flow per share growth rate (conservative)


Terminal growth rate


Years of elevated growth


Total years to stimulate


Discount Rate (Our “Next Best Alternative”)


Restaurant Level Margin (Today) Restaurant Level Margin (Yr 10)
Cava 26.1% 27.5%
Chipotle 27.5% 30%+

Long Run FCF Margin Shares Outstanding Net Cash
Cava 15% 120M (Fully Diluted) ~$350M
Chipotle 15% 28M (Fully Diluted) $1.8B

CAVA Value
Share Price $34/share
Share Count 120M (fully, fully diluted)
Cash & Debt $350M/$0 (note operating lease liability accounting)
Enterprise Value $3.73B
TTM Sales ~$600M
Fwd. 12 Month Sales ~$850M
EV/Revenues (FTM) 4.39x

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