CAVA Group (NYSE:CAVA) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

CAVA Group (NYSE:CAVA) issued its quarterly earnings results on Tuesday. The company reported $0.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.01, FiscalAI reports. CAVA Group had a return on equity of 8.88% and a net margin of 12.14%.The company had revenue of $274.99 million for the quarter, compared to the consensus estimate of $268.04 million. During the same period last year, the business posted $0.05 earnings per share. The firm’s revenue was up 20.9% compared to the same quarter last year.

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

• Record 2025 financials: CAVA surpassed $1 billion in revenue, delivered $152.8M adjusted EBITDA and $63.7M GAAP net income, and finished the quarter with $393M cash and zero debt, providing strong liquidity.
• Aggressive expansion with healthy new-unit productivity: Opened 72 net new restaurants in 2025 to end with 439 locations, plan 74–76 openings in 2026 and remain on track for a long-term 1,000-unit target, with 2025 cohort AUVs trending above $3M and new-unit productivity >100%.
• 2026 guidance and menu impact: Management guides 3%–5% same-restaurant sales for 2026, implemented a ~1.4% menu price in Jan, and will introduce pomegranate-glazed salmon (penny-profit neutral but a ~100 bps restaurant-margin headwind).
• Operational and people investments to scale: New COO hire, rollout of AGM roles (60% filled), field leadership reorganization, KDS deployed in 370 restaurants (remaining retrofits this year) and TurboChef ovens companywide to improve execution and consistency.
• Rising equity and tax-related expenses: Stock-based compensation expected to increase to $22–24M in 2026 with an accelerated vesting design, and the effective tax rate is projected to rise to ~25%–30% (from 10% in 2025), which will pressure reported earnings timing.

CAVA Group Stock Down 0.6%

CAVA Group stock traded down $0.40 during mid-day trading on Tuesday, hitting $67.95. 4,729,206 shares of the company were exchanged, compared to its average volume of 3,546,484. The company has a market capitalization of $7.88 billion, a PE ratio of 58.58, a price-to-earnings-growth ratio of 5.15 and a beta of 2.41. The business has a fifty day moving average of $64.66 and a 200 day moving average of $61.52. CAVA Group has a 1-year low of $43.41 and a 1-year high of $103.00.

Insider Buying and Selling at CAVA Group

In other news, CEO Brett Schulman sold 4,542 shares of the business’s stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $62.14, for a total transaction of $282,239.88. Following the completion of the sale, the chief executive officer owned 802,783 shares in the company, valued at $49,884,935.62. The trade was a 0.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Adam David Phillips sold 774 shares of the firm’s stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $62.14, for a total value of $48,096.36. Following the completion of the transaction, the chief accounting officer owned 10,435 shares in the company, valued at approximately $648,430.90. This represents a 6.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 42,843 shares of company stock worth $2,764,355 over the last ninety days. Company insiders own 12.10% of the company’s stock.

Hedge Funds Weigh In On CAVA Group

Institutional investors have recently modified their holdings of the stock. Morgan Stanley raised its holdings in shares of CAVA Group by 33.7% in the fourth quarter. Morgan Stanley now owns 3,318,894 shares of the company’s stock valued at $194,786,000 after purchasing an additional 835,628 shares during the last quarter. State Street Corp grew its position in CAVA Group by 1.3% in the fourth quarter. State Street Corp now owns 2,920,442 shares of the company’s stock valued at $171,401,000 after purchasing an additional 36,508 shares in the last quarter. Franklin Resources Inc. increased its stake in CAVA Group by 7.9% in the 4th quarter. Franklin Resources Inc. now owns 1,498,650 shares of the company’s stock valued at $87,956,000 after buying an additional 109,240 shares during the last quarter. Marshall Wace LLP lifted its position in CAVA Group by 689.8% during the 4th quarter. Marshall Wace LLP now owns 1,387,774 shares of the company’s stock worth $81,448,000 after buying an additional 1,212,068 shares in the last quarter. Finally, Alliancebernstein L.P. boosted its stake in shares of CAVA Group by 58.7% during the 2nd quarter. Alliancebernstein L.P. now owns 1,353,058 shares of the company’s stock worth $113,968,000 after buying an additional 500,367 shares during the last quarter. 73.15% of the stock is currently owned by institutional investors and hedge funds.

More CAVA Group News

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

• Positive Sentiment: Full‑year revenue topped $1 billion for the first time, a meaningful scale milestone that helped an initial positive market reaction. Cava surges 9% on as FY revenue tops $1B for first time
• Positive Sentiment: Company reported Q4 revenue above Street estimates and said it expects annual sales above analysts’ estimates — signals of continued top‑line momentum and growth visibility. Mediterranean restaurant chain Cava forecasts annual sales above estimates
• Positive Sentiment: Analyst sentiment has improved: Truist raised its price target (to $80) and some coverage is upbeat, providing potential support for upside. Cava Stock In The Spotlight Ahead Of Q4 Earnings
• Neutral Sentiment: Reported EPS of $0.04 matched consensus and margins/ROE are moderate (net margin ~12%, ROE ~8.9%) — results broadly in line with expectations, limiting an outsized reaction on the earnings beat. View Press Release
• Neutral Sentiment: Technical charts showed bullish patterns into the release, which may have amplified intraday moves but are not a substitute for fundamentals. CAVA Group stock charts bullish patterns before earnings release
• Negative Sentiment: Same‑store sales surprise was driven largely by menu price increases rather than traffic growth — a risk if consumer spending softens or competitors compete on value. Cava reports surprise same-store sales growth, driven by menu prices
• Negative Sentiment: Valuation remains rich (high P/E vs. peers) and reported EPS is modest — leaves the stock vulnerable if growth or margin trends disappoint.

Analysts Set New Price Targets

A number of brokerages recently issued reports on CAVA. Royal Bank Of Canada set a $70.00 target price on shares of CAVA Group in a research report on Wednesday, November 5th. Telsey Advisory Group restated an “outperform” rating and set a $85.00 price objective on shares of CAVA Group in a report on Thursday, February 19th. Mizuho upped their price objective on shares of CAVA Group from $52.00 to $64.00 and gave the company a “neutral” rating in a research report on Friday, January 9th. UBS Group lifted their target price on CAVA Group from $66.00 to $69.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 18th. Finally, The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $68.00 price target on shares of CAVA Group in a report on Wednesday, November 5th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $82.29.

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.