Cava isn’t everywhere yet. If people aren’t familiar with the brand they are quick to look at the financials and chalk it up as ‘overvalued’. This is a very powerful brand which should not be underestimated.
The numbers are fine...nothing to jump up and down about. Investors are reacting negatively, because the share price had gone up about 90% in a year. Anything less than a spectacular earnings report, you can expect investors to throw a mild tantrum. A 6-7% slide is really nothing.
@@TruthSeaker-t6q Why would the stock go up above $160? It's profit margin is low, it has lots of debt, and the PE ratio is above 400. Chipotle PE ratio is only 66. Isn't Cava way overvalue?
Cava isn’t everywhere yet. If people aren’t familiar with the brand they are quick to look at the financials and chalk it up as ‘overvalued’. This is a very powerful brand which should not be underestimated.
The numbers are fine...nothing to jump up and down about. Investors are reacting negatively, because the share price had gone up about 90% in a year. Anything less than a spectacular earnings report, you can expect investors to throw a mild tantrum. A 6-7% slide is really nothing.
I'm buying the dip..
Big beat so am buying also. +200% earnings, stock will go to $160-$200 fast.
@@TruthSeaker-t6q Why would the stock go up above $160? It's profit margin is low, it has lots of debt, and the PE ratio is above 400. Chipotle PE ratio is only 66. Isn't Cava way overvalue?
It's that conservative mentality that has allowed the stock to go higher. They don't waste respurces