CAVA Group, Inc. (CAVA)
NYSE:CAVA
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CAVA Group, Inc.
(NYSE:CAVA)
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Rating:63Neutral
Price Target:
$86.00
▼(-9.26% Downside)
Action:Reiterated
Date:05/23/26
The score is driven mainly by solid fundamental progress (growth with sustained profitability and improving operating cash flow) and a constructive earnings update with raised FY26 outlook. These positives are tempered by a very high valuation, recent margin normalization versus 2024, and currently weak-to-mixed technical momentum.
Positive Factors
Sustained Revenue Growth
Consistent high revenue growth reflects strong consumer demand and successful expansion of the CAVA concept. Over 2–6 months this underpins scaling benefits, supports unit economics, funds reinvestment, and signals durable market acceptance across company and digital channels.
Negative Factors
Menu-driven Margin Pressure
New product rollouts that materially raise food costs can compress margins if pricing or mix doesn’t offset cost increases. A sustained popular offering with limited pricing power could permanently lower restaurant-level margins absent offsetting efficiencies.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Consistent high revenue growth reflects strong consumer demand and successful expansion of the CAVA concept. Over 2–6 months this underpins scaling benefits, supports unit economics, funds reinvestment, and signals durable market acceptance across company and digital channels.
Read all positive factors
CAVA Group, Inc. Key Performance Indicators (KPIs)
Any
Restaurant Count
Indicates the total number of restaurant locations, reflecting the company’s expansion strategy and market penetration. A growing count suggests potential revenue growth and brand presence.
Indicates the total number of restaurant locations, reflecting the company’s expansion strategy and market penetration. A growing count suggests potential revenue growth and brand presence.
Data provided by:
The Fly
The FlyCAVA Group, Inc. (CAVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.44B
Dividend YieldN/A
Average Volume (3M)3.28M
Price to Earnings (P/E)136.8
Beta (1Y)1.59
Revenue Growth24.08%
EPS Growth-57.11%
CountryUS
Employees10,300
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.53
Shares Outstanding116,473,854
10 Day Avg. Volume4,193,611
30 Day Avg. Volume3,281,453
Financial Highlights & Ratios
PEG Ratio-2.11
Price to Book (P/B)8.92
Price to Sales (P/S)5.90
P/FCF Ratio266.17
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue7.19
Enterprise Value/Gross Profit38.65
Enterprise Value/Ebitda55.01
Forecast
1Y Price Target
$93.23Price Target Upside-1.64% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering25
EPS Forecast (FY)0.55
Revenue Forecast (FY)$1.50B
CAVA Group, Inc. Business Overview & Revenue Model
Company Description
CAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company offers salads, dips, spreads, toppings, and dressings. It sells its products through whole food markets and grocery stores. The company also provides online food ...
How the Company Makes Money
CAVA Group makes money primarily through sales of food and beverages to customers at its company-operated CAVA restaurants. Revenue is generated from in-restaurant transactions as well as off-premise ordering, including pickup and delivery facilit...
CAVA Group, Inc. Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call reported strong top-line growth, expanding unit economics, healthy adjusted EBITDA expansion, robust cash and liquidity, successful product and technology launches, and ongoing investments in people and systems. Near-term headwinds include margin pressure from the salmon rollout (~100 bps), higher other operating expenses driven by digital/3P delivery mix, increased preopening costs, and potential energy/utility cost impacts (20–40 bps). Management raised guidance for openings and comp ranges while maintaining a cautious view on macro risks and tax/comp dilution; overall the positives (large revenue/EBITDA growth, unit productivity, liquidity, and technology/product progress) materially outweigh the manageable headwinds.Positive Updates
Strong Revenue Growth
Revenue grew 32.2% year-over-year to $434.4 million in Q1 FY26, reflecting robust top-line momentum across the system.
Negative Updates
Net Income and EPS Slight Decline
Net income was $23.6 million in Q1 FY26 versus $25.7 million in prior year and diluted EPS was $0.20 versus $0.22, driven largely by a smaller permanent tax benefit from equity-based compensation despite higher pre-tax earnings.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue grew 32.2% year-over-year to $434.4 million in Q1 FY26, reflecting robust top-line momentum across the system.
Read all positive updates
Company Guidance
CAVA raised its FY26 outlook to 75–77 net new restaurants, same‑restaurant sales growth of 4.5%–6.5%, a restaurant‑level profit margin of 23.7%–24.3%, preopening costs of $22.0–22.5M and adjusted EBITDA (including preopening) of $181–191M; management also expects equity‑based compensation of $22–24M and an effective tax rate of 23%–28% (Q2 consistent with Q1). The guidance assumes the national salmon roll‑out (running through Q4) will be ~100 bps of margin headwind, contemplates a potential 20–40 bps energy‑related headwind, includes further wage/operational investments, leaves G&A as a % of revenue roughly flat, and notes Q2 comps are tracking in line with Q1 and above the revised full‑year guide; liquidity at quarter end was $403M cash & investments, zero debt and a $150M revolver.CAVA Group, Inc. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.29B | 1.18B | 963.71M | 728.70M | 564.12M | 500.07M |
| Gross Profit | 239.28M | 216.81M | 241.81M | 180.35M | 97.98M | 82.15M |
| EBITDA | 168.13M | 144.46M | 121.31M | 78.86M | 27.95M | 12.07M |
| Net Income | 61.60M | 63.74M | 130.32M | 13.28M | -58.99M | -37.39M |
Balance Sheet | ||||||
| Total Assets | 1.42B | 1.36B | 1.17B | 983.76M | 583.88M | 362.19M |
| Cash, Cash Equivalents and Short-Term Investments | 402.96M | 393.03M | 366.12M | 332.43M | 39.13M | 140.33M |
| Total Debt | 498.49M | 466.25M | 378.71M | 336.20M | 314.73M | 15.34M |
| Total Liabilities | 612.96M | 580.37M | 474.10M | 412.95M | 1.03B | 755.22M |
| Stockholders Equity | 809.97M | 779.66M | 695.57M | 570.80M | -448.50M | -393.02M |
Cash Flow | ||||||
| Free Cash Flow | 38.92M | 26.14M | 52.90M | -41.70M | -98.28M | -53.02M |
| Operating Cash Flow | 210.33M | 184.84M | 161.03M | 97.10M | 6.04M | 3.39M |
| Investing Cash Flow | -207.81M | -273.04M | -108.13M | -138.81M | -104.16M | -56.31M |
| Financing Cash Flow | 3.90M | 5.00M | -19.20M | 335.01M | -3.08M | 143.15M |
CAVA Group, Inc. Technical Analysis
Negative
94.78
Price Trends
84.53
Negative
78.35
Negative
68.77
Positive
Market Momentum
-2.30
Positive
37.33
Neutral
14.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAVA, the sentiment is Negative. The current price of 94.78 is above the 20-day moving average (MA) of 80.43, above the 50-day MA of 84.53, and above the 200-day MA of 68.77, indicating a neutral trend. The MACD of -2.30 indicates Positive momentum. The RSI at 37.33 is Neutral, neither overbought nor oversold. The STOCH value of 14.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAVA.
CAVA Group, Inc. Risk Analysis
CAVA Group, Inc. disclosed 50 risk factors in its most recent earnings report. CAVA Group, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CAVA Group, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.93B | 12.90 | 123.43% | ― | 11.75% | 40.33% | |
67 Neutral | $3.20B | 18.20 | 38.34% | 2.11% | 5.14% | 8.17% | |
63 Neutral | $8.44B | 136.81 | 7.92% | ― | 24.08% | -57.11% | |
62 Neutral | $4.11B | 37.09 | -15.30% | 0.45% | 8.96% | -32.63% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $1.01B | 59.96 | 4.04% | ― | -1.55% | ― | |
50 Neutral | $2.44B | 55.76 | 8.02% | ― | 16.22% | 228.81% |
* Consumer Cyclical Sector Average
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CAVA Group, Inc. Corporate Events
Business Operations and StrategyPrivate Placements and Financing
CAVA Group Amends Credit Agreement to Bolster Liquidity
Positive
Mar 25, 2026
On March 20, 2026, CAVA Group, Inc. entered into Amendment No. 3 to its existing Credit Agreement with various financial institutions and JPMorgan Chase Bank, N.A. acting as administrative agent. The amendment, formalized and signed on March 25, 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.