CAVA

I recently participated in the Point72 2024 National Case Competition with my teammates, Santiago Escrucería and Alex Owen. Together, we worked on a stock pitch for CAVA, a Mediterranean-inspired fast-casual restaurant chain. The Mediterranean value proposition of CAVA immediately caught my attention, resonating with my Spanish roots. With the stock up over 200% year-to-date and the fast-casual industry booming—expected to grow from $95 billion to $130 billion by 2028 alongside companies like Chipotle and Sweetgreen—CAVA presented a compelling subject for analysis.

In just one week, we submitted an Excel model containing our trading comps, DCF, precedent transactions, and football field valuation, along with a PowerPoint presentation that summarized all of our findings. Ultimately, we concluded that CAVA was overvalued, with a target price of around $90.

This experience wasn’t just about numbers for me. I really enjoyed working in a team, bouncing ideas off each other, and digging into the financials together. It was a great way to sharpen my skills, especially with tools like the Bloomberg terminal, and to better understand the foundations every trader needs. Even though fundamental analysis isn’t my primary passion, this project gave me a new perspective and was a valuable step forward in my investment education.