Analysts predict that Cava will become the next Chipotle.

Since going public in June 2023, the fast-casual Mediterranean chain has had a remarkable year. It reported a profit in its first quarterly report, consistently exceeded Wall Street's earnings estimates, and now has a market cap of over $14 billion, an increase of nearly 500% from its initial valuation.

Now, Wall Street analysts see shades of another fast-casual success story: .

In the second quarter of 2024, Cava outperformed industry standards with a 14.4% increase in same-store sales growth and a 9.5% increase in traffic growth. Additionally, the company's revenue grew by 35.2% compared to the same quarter the previous year.

On Thursday, Cava closed at $127.12 and has experienced a 211% increase in value this year.

""Value wars are often misconstrued as discount wars, but we believe that value is a combination of attributes such as quality, relevance, convenience, and experience. For us, the quality of our food and the relevance of our Mediterranean cuisine are what make our offerings valuable," said Schulman."

"Comparing the cost of Cava versus the premium burger at a QSR," said Setyan. "The prices are now quite similar. This benefits the category, including Cava."

Cava's approach to meal preparation is similar to Chipotle's, with a focus on customization, fresh ingredients, and fast production. This has enabled Cava to maintain efficiency while keeping labor costs low.

The burrito maker is frequently compared to Cava's model by investors.

"Chipotle successfully transformed the Mexican category into a national chain, and now Cava is doing the same with the Mediterranean cuisine and concept."