Brett Schulman, CEO and President of Cava Group Inc. (NYSE:CAVA), recently sold shares of the company's common stock totaling approximately $1.63 million. The transactions occurred on January 2, 2025, as disclosed in a recent SEC filing. The Mediterranean restaurant chain, currently valued at $13.19 billion, has seen its stock surge nearly 180% over the past year. According to InvestingPro analysis, the stock is currently trading above its Fair Value.
Schulman sold a total of 14,214 shares at prices ranging from $114.89 to $115.45 per share. These sales were made to cover tax withholding obligations related to the vesting of restricted stock units (RSUs), as mandated by the company's equity incentive plans. Following these transactions, Schulman retains direct ownership of 796,933 shares and indirect ownership through his spouse and an LLC.
The sales were part of a broader "sell to cover" strategy, which does not involve discretionary trading by Schulman. This approach ensures that tax obligations are met without requiring the executive to personally fund the tax payments. For deeper insights into CAVA's financial health and valuation metrics, including 15+ additional ProTips and comprehensive analysis, visit InvestingPro.
In other recent news, CAVA Group's third-quarter results surpassed expectations, reporting an 18.1% increase in same-store sales and a 39% surge in revenue to $241.5 million. The adjusted EBITDA for the quarter was also impressive at $33.5 million. Bernstein SocGen, while acknowledging CAVA Group's strong performance, initiated coverage on the company's stock with a Market Perform rating and a price target set at $145.00. The firm's analysis suggests that the current stock price already reflects a high level of expected perfection.
Several analyst firms have adjusted their outlook on CAVA Group. Piper Sandler raised its price target to $142, maintaining a Neutral rating. Loop Capital increased its target to $147, maintaining a Hold rating. Morgan Stanley (NYSE:MS) raised its target to $135, keeping an Equalweight rating. CFRA upgraded their rating from Hold to Buy, with a new price target of $200. TD Cowen also adjusted its price target for CAVA Group, raising it to $150 and maintaining a Buy rating.
The company's management has provided guidance for the upcoming year, anticipating a minimum net unit growth of 17% for 2025 and expecting restaurant-level margins to remain in line with the levels projected for 2024. These recent developments underscore the strong performance and positive outlook for CAVA Group.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.