Cava Group (CAVA -1.67%) is off to a fast start. The Mediterranean-style restaurant company has seen its stock more than double from its initial public offering (IPO) price of $22 in slightly more than a month's time.

Yet these gains might be just the start of a far larger long-term move in Cava's share price. Here are five reasons why this recent IPO's stock is still an attractive investment today.

1. A winning concept

Cava has a solid formula for success. Its restaurants serve healthy and delicious Mediterranean-inspired food quickly and conveniently in a made-to-order format. The fast-casual chain's relatively affordable menu prices add to its allure among increasingly cost-conscious consumers and broaden its potential customer base. All of which should boost Cava's odds of success as the company embarks on its national expansion strategy.

Importantly, Cava's concept also generates impressive unit economics. On average, its stores produce more than $2 million in revenue, with restaurant-level profit margins of more than 20%.  

2. A brilliant acquisition

To accelerate its expansion, Cava acquired its rival Zoe's Kitchen for roughly $300 million in 2018. The merger made the combined company a more powerful force in the restaurant industry and the leader in Mediterranean cuisine. It also allowed Cava to rapidly and cost-effectively expand its geographic footprint.

Since then, Cava has worked to convert more than 200 Zoe's locations into Cava restaurants -- at approximately half the cost of opening new stores. Cava also used its culinary and technological expertise to boost sales at the former Zoe's stores. 

3. Smart backing  

Better still, the merger with Zoe's Kitchen bolstered Cava's leadership team. Panera Bread founder and former CEO Ron Shaich became chairman of Cava's board of directors as part of the deal. 

Shaich is a respected leader in the restaurant industry. He brings a wealth of experience to Cava's management team. Shaich is credited with predicting shifts in consumer behavior. He positioned Panera as a healthier option to its rivals by removing artificial ingredients from its food. Shaich also spearheaded Panera's digital initiatives, such as mobile ordering and self-service kiosks. 

Perhaps most importantly, Shaich successfully led Panera's regional-to-national expansion efforts. Now, Shaich intends to serve as an advisor to Cava's CEO, Brett Schulman, as the young restaurant chain conducts its own growth campaign.

4. A path to profitability

Although its restaurants are generating strong returns on investment, Cava is not yet profitable on a companywide basis. (It generated a net loss of $2.1 million in the first quarter of 2023.) This is largely due to the costs of opening new stores and converting Zoe's Kitchen locations. Yet these conversions are mostly complete, and Cava should benefit from scale efficiencies as it expands its store count in the coming years.

There is already evidence of these favorable trends. Cava produced $16.7 million of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first quarter, compared to a loss of $1.6 million in the prior-year period.

"You're seeing the inflection point in the business, and all of that robust structure we've invested in, the restaurant growth, starting to take hold and drive tailwinds to the business," Schulman said during an interview with CNBC in June. 

5. A long runway for growth still ahead 

Best of all, Cava is still early in its expansion cycle, with only 263 locations as of April 16. Management sees an opportunity to grow that figure to more than 1,000 stores in the U.S. by 2032. 

Some investment banks believe Cava's long-term addressable market could be far larger. Jefferies Financial Group, for one, thinks Cava could potentially grow its store count to 7,000 units in North America, which would place it on par with Chipotle Mexican Grill's current store count in the region. 

Chipotle is "the most successful fast casual brand to date and provides a template for what the bull case could look like for Cava over the coming decades," Morgan Stanley analyst Brian Harbour said earlier this month.