CAVA Group (NYSE:CAVA) Announces Quarterly Earnings Results

CAVA Group (NYSE:CAVA) announced its quarterly earnings results on Tuesday. The company reported $0.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.01, FiscalAI reports. The business had revenue of $368.44 million for the quarter, compared to analyst estimates of $360.09 million. CAVA Group had a return on equity of 7.92% and a net margin of 4.79%.The company’s quarterly revenue was up 31.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.16 earnings per share.

Here are the key takeaways from CAVA Group’s conference call:

• CAVA reported strong second-quarter results, with revenue up 31.3% year over year to $365.4 million, same-restaurant sales up 9% on 5.3% traffic growth, and adjusted EBITDA up 30% to $54.7 million.
• Unit expansion remains robust, with 17 net new restaurants added to reach 476 locations; new-unit productivity exceeded 100%, and management highlighted upcoming entries into Las Vegas and the Bay Area.
• Management said food, beverage, and packaging costs are expected to rise as a percentage of revenue in the second half due to fuel surcharges and the rollout of pre-marinated chicken, while labor investments and seasonal margin pressure will also weigh on profitability.
• Although same-restaurant sales recovered to mid-single-digit growth after concerns related to the Cyclospora outbreak, full-year guidance remains cautious, incorporating potential lingering food-safety impacts and macroeconomic uncertainty; guidance was maintained at 4.5%-6.5% same-restaurant sales growth and $181 million-$191 million of adjusted EBITDA.
• CAVA cited encouraging customer response to its Pomegranate Glazed Salmon, continued loyalty-member growth, and strong lower-income cohort performance, while ongoing investments in technology, leadership development, catering, and operational simplification are intended to support longer-term growth.

CAVA Group Price Performance

Shares of CAVA traded up $8.24 during midday trading on Wednesday, hitting $69.05. 4,361,136 shares of the company traded hands, compared to its average volume of 3,379,114. The stock has a 50-day moving average of $73.06 and a 200-day moving average of $76.79. CAVA Group has a one year low of $43.41 and a one year high of $98.79. The firm has a market cap of $8.04 billion, a P/E ratio of 131.71, a PEG ratio of 4.23 and a beta of 1.74.

Insiders Place Their Bets

In other news, Director Karen Kochevar sold 10,000 shares of the business’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $90.00, for a total transaction of $900,000.00. Following the completion of the transaction, the director directly owned 3,074 shares in the company, valued at $276,660. The trade was a 76.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Adam David Phillips sold 757 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $89.43, for a total value of $67,698.51. Following the completion of the sale, the chief accounting officer directly owned 6,848 shares in the company, valued at approximately $612,416.64. The trade was a 9.95% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 82,703 shares of company stock worth $7,249,579. Company insiders own 6.70% of the company’s stock.

Hedge Funds Weigh In On CAVA Group

A number of large investors have recently added to or reduced their stakes in CAVA. Pacer Advisors Inc. grew its position in CAVA Group by 65.6% during the 4th quarter. Pacer Advisors Inc. now owns 21,742 shares of the company’s stock worth $1,276,000 after acquiring an additional 8,612 shares during the last quarter. Invesco Ltd. grew its position in shares of CAVA Group by 8.2% in the 4th quarter. Invesco Ltd. now owns 145,565 shares of the company’s stock worth $8,543,000 after buying an additional 11,013 shares during the last quarter. Alberta Investment Management Corp purchased a new stake in shares of CAVA Group in the 4th quarter worth about $1,473,000. Mercer Global Advisors Inc. ADV purchased a new position in shares of CAVA Group during the fourth quarter valued at about $323,000. Finally, State of Tennessee Department of Treasury raised its stake in CAVA Group by 4.8% in the fourth quarter. State of Tennessee Department of Treasury now owns 34,021 shares of the company’s stock worth $2,062,000 after buying an additional 1,543 shares in the last quarter. Hedge funds and other institutional investors own 73.15% of the company’s stock.

Analyst Ratings Changes

CAVA has been the subject of several recent analyst reports. Northcoast Research upgraded shares of CAVA Group to a “strong sell” rating in a research note on Tuesday, April 21st. Barclays lifted their target price on shares of CAVA Group from $70.00 to $74.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 20th. TD Cowen restated a “buy” rating on shares of CAVA Group in a research note on Wednesday. Robert W. Baird increased their price target on shares of CAVA Group from $88.00 to $98.00 and gave the company an “outperform” rating in a research report on Wednesday, May 20th. Finally, Telsey Advisory Group lifted their price target on shares of CAVA Group from $92.00 to $95.00 and gave the stock an “outperform” rating in a report on Wednesday, May 20th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, CAVA Group has a consensus rating of “Moderate Buy” and a consensus price target of $90.81.

Key CAVA Group News

Here are the key news stories impacting CAVA Group this week:

• Positive Sentiment: CAVA reported second-quarter earnings of $0.19 per share, ahead of the $0.18 consensus estimate, while revenue rose 31.3% year over year to $368.44 million, exceeding expectations of $360.09 million. The company also posted approximately $23 million in profit. CAVA Group Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Comparable restaurant sales increased 9%, supported by robust customer traffic and ongoing demand for CAVA’s Mediterranean fast-casual offerings. The performance exceeded comparable-sales expectations and suggests the brand is continuing to attract customers despite broader economic pressures. Cava Same-Store Sales Gains Boost Earnings
• Positive Sentiment: Management reiterated its fiscal 2026 outlook for 4.5% to 6.5% same-restaurant sales growth, providing reassurance that recent food-safety-related volatility has not yet forced a forecast reduction. CAVA Reiterates Fiscal 2026 Outlook
• Positive Sentiment: RBC raised its price target from $90 to $95 and maintained an “outperform” rating, indicating substantial expected upside based on the referenced share price. RBC Analyst Rating
• Neutral Sentiment: KeyCorp lowered its price target from $110 to $95 but retained an “overweight” rating. The target reduction suggests more cautious assumptions, while the rating still signals confidence in CAVA’s longer-term prospects. KeyCorp Analyst Rating
• Negative Sentiment: Food-safety issues remain a source of volatility, and CAVA’s high valuation leaves the stock sensitive to any slowdown in traffic, comparable sales, or earnings growth.

CAVA Group Company Profile

CAVA Group, Inc (NYSE: CAVA) is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.

Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe’s Kitchen.