CAVA stock

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workspace10
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CAVA stock

Post by workspace10 »

Has anyone heard of the fast casual chain called cava. Jim cramer said it s a good buy and could be the next chipotle. What do you guys think?

I ate there a few weeks ago for the first time and the food is very tasty and healthy. But, I wonder will mediiterranean food be as popular as mexican in this country? We just have not had as much exposure to it.

And what would be a good stock price to buy it at?
Geologist
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Re: CAVA stock

Post by Geologist »

This is a board for “investing advice inspired by Jack Bogle”. He recommended against investing in individual stocks, Generally, the recommendation here is to invest in broadly diversified investment companies (mutual funds or ETF’s), usually index funds. Following all this, I don’t have any opinion on this stock.

Additionally, why would you think Jim Cramer has useful advice for individual stocks?
dukeblue219
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Re: CAVA stock

Post by dukeblue219 »

1) Jim Cramer doesn't know squat.

2) I invest in the whole market to avoid trying to find one needle in a a haystack.

3) Cava has 568 locations. They're quite well-known in many parts of the US. Sure, Chipotle has 3000+ locations but you aren't exactly getting in on the ground floor.
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Squirrel208
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Re: CAVA stock

Post by Squirrel208 »

VTI/VTSAX already has all the CAVA I need. :beer
hlfo718
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Re: CAVA stock

Post by hlfo718 »

Should never listen to the talking heads on CNBC. While the food is decent, I stopped going there since there are better options. Also, I rarely see a line for their food while still seeing people line up for Chipotle.
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mrmass
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Re: CAVA stock

Post by mrmass »

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goodenyou
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Re: CAVA stock

Post by goodenyou »

It’s considered a Zombie stock by some. It has been criticized as PE duping the public into enriching the PE holders when it went to IPO.
"Ignorance more frequently begets confidence than does knowledge" | “At 50, everyone has the face he deserves”
alexbogle
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Re: CAVA stock

Post by alexbogle »

They may go way of sweetgreens. Their quality has gone down. I used to eat there at least twice week as I could walk to it.

Problem is people will cut places like cava and aweetgreens when they need to save money. Too expensive for what it is.
"Learn every day, but especially from the experiences of others. It’s cheaper!” -- Jack Bogle
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Cranberry44
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Re: CAVA stock

Post by Cranberry44 »

workspace10 wrote: Sun Nov 19, 2023 11:38 am Has anyone heard of the fast casual chain called cava. Jim cramer said it s a good buy and could be the next chipotle. What do you guys think?

I ate there a few weeks ago for the first time and the food is very tasty and healthy. But, I wonder will mediiterranean food be as popular as mexican in this country? We just have not had as much exposure to it.

And what would be a good stock price to buy it at?
Used to eat a Cava all the time in 2016/2017. I'm so surprised that it is now getting media attention. I don't eat there any more since I moved and there isn't one near me. (Also... I wouldn't take Cramer's investing advice)
GreendaleCC
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Re: CAVA stock

Post by GreendaleCC »

workspace10 wrote: Sun Nov 19, 2023 11:38 amJim cramer said it s a good buy and could be the next chipotle. What do you guys think?
As an alternative, you could also consider the Inverse Cramer Tracker ETF:

https://www.marketwatch.com/investing/fund/sjim
dukeblue219
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Re: CAVA stock

Post by dukeblue219 »

Cranberry44 wrote: Sun Nov 19, 2023 2:21 pm Used to eat a Cava all the time in 2016/2017. I'm so surprised that it is now getting media attention.
IPO'd this summer.
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workspace10
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Re: CAVA stock

Post by workspace10 »

Well i agree with the bogle principles but wouldn't it be great if we could identify the next chipotle and buy the stock now for a few thousand dollars? But then keep all your other investments in index funds.
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workspace10
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Re: CAVA stock

Post by workspace10 »

Well i agree with the bogle principles but wouldn't it be great if we could identify the next chipotle and buy the stock now for a few thousand dollars? But then keep all your other investments in index funds.
Doctor Rhythm
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Re: CAVA stock

Post by Doctor Rhythm »

workspace10 wrote: Sun Nov 19, 2023 2:39 pm Well i agree with the bogle principles but wouldn't it be great if we could identify the next chipotle and buy the stock now for a few thousand dollars? But then keep all your other investments in index funds.
That’s pretty much the core issue with stock picking.

It would also be great to be able to identify which horse will run around a track faster than other people think it will.
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Nate79
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Re: CAVA stock

Post by Nate79 »

workspace10 wrote: Sun Nov 19, 2023 2:39 pm Well i agree with the bogle principles but wouldn't it be great if we could identify the next chipotle and buy the stock now for a few thousand dollars? But then keep all your other investments in index funds.
Are you sure you agree with Boglehead principles? You are proposing the complete opposite.
humbledinvestor
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Re: CAVA stock

Post by humbledinvestor »

Didn’t Cramer say the FTX dude was the next Buffett?
How did that work out?
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TechExec
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Re: CAVA stock

Post by TechExec »

workspace10 wrote: Sun Nov 19, 2023 11:38 am Has anyone heard of the fast casual chain called cava. Jim cramer said it s a good buy and could be the next chipotle. What do you guys think?

I ate there a few weeks ago for the first time and the food is very tasty and healthy. But, I wonder will mediiterranean food be as popular as mexican in this country? We just have not had as much exposure to it.

And what would be a good stock price to buy it at?
Always go reverse Cramer. He's the ultimate contrarian indicator. :)
Rocky Mtn Man
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Re: CAVA stock

Post by Rocky Mtn Man »

Somebody paid $57/share on July 31st. It's worth $34 on Friday.

Not for me.
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watchnerd
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Re: CAVA stock

Post by watchnerd »

Even if I was going to invest in individual stocks, why would I pick a restaurant?

Brick and mortar economics, thin moat of differentiation, profit margins constrained....

Why buy?
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RJC
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Re: CAVA stock

Post by RJC »

It's everywhere around the DC area and I think people are getting bored of it to be honest.
Gaston
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Re: CAVA stock

Post by Gaston »

workspace10 wrote: Sun Nov 19, 2023 11:38 am Has anyone heard of the fast casual chain called cava. Jim Cramer said it’s a good buy and could be the next chipotle.

My apologies for the unhelpful post, but I would be inclined to do the opposite of whatever Mr. Cramer says.
“My opinions are just that - opinions.”
Topic Author
workspace10
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Re: CAVA stock

Post by workspace10 »

I live in New Hampshire and there are no CAVAs here. The first chipotle opened here a few years ago and we were all so excited.

Well, I guess I am just envious of those people who pick the right stock early on.....like teslanaires...
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goodenyou
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Re: CAVA stock

Post by goodenyou »

Have you seen the new (Progressive, I think?) ad where the guy checks out at the counter of a fast food salad place? The clerk say that will be $16.00...and the guy replies " Oh, I am only paying for my order (he was by himself)".

That's the problem....
"Ignorance more frequently begets confidence than does knowledge" | “At 50, everyone has the face he deserves”
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Wiggums
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Re: CAVA stock

Post by Wiggums »

workspace10 wrote: Sun Nov 19, 2023 2:39 pm Well i agree with the bogle principles but wouldn't it be great if we could identify the next chipotle and buy the stock now for a few thousand dollars? But then keep all your other investments in index funds.
The Vanguard total stock market fund is up almost 18% YTD.
A few thousand dollars invested in Cava won’t move the portfolio needle much. Not to mention that Cava stock is down almost 21% YTD. The Jim Cramer show is just entertainment.
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nisiprius
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Re: CAVA stock

Post by nisiprius »

Not that it matters, because I suppose it has to do with an IPO or something, but Cramer has not been consistent:

Image

He doesn't think CAVA is necessarily just plain good, apparently. It's good now because XYZ, it's not so good now because ZYX.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
Carol88888
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Re: CAVA stock

Post by Carol88888 »

I think it was either Warren Buffett or Charlie Munger who said that "IPO" stands for "it's probably overpriced."

The problem with a new untested company is how do you arrive a the correct valuation? There are plenty of tested companies with long track records to chose from and even then it is hard to get the correct valuation.

Still, if you have the gambling gene and absolutely need to scratch it I have no problem with spending (wasting) 1% of one's money on an idea.
But if you are only willing to invest 1% it probably won't move the needle much even if you win, so why bother?
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