Liontrust Sustainable Future Managed Fund on CAVA Group
Thesis
Liontrust held CAVA, a US fast-casual restaurant chain, and highlighted the strength of its second-quarter trading despite a sharp share-price decline. Revenue rose 31% and same-restaurant sales increased 9%, including 5% growth in guest traffic. However, restaurant-level margins declined modestly and management did not increase full-year guidance. The holding therefore combines rapid reported sales expansion with rising investor concern about the durability of traffic and US consumer demand.
“Revenue grew 31%, with same-restaurant sales increasing 9%, including 5% growth in guest traffic.”
Key risks
- Slowing restaurant guest traffic.
- Pressure on restaurant-level margins.
- Higher oil prices squeezing household spending budgets.
- Higher bond yields and mortgage costs weakening consumer demand.