CAVA Group (NYSE:CAVA) Issues Earnings Results

CAVA Group (NYSE:CAVA) posted its earnings results on Wednesday. The company reported $0.11 earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.01), FiscalAI reports. CAVA Group had a return on equity of 7.98% and a net margin of 4.50%. The business had revenue of $356.44 million during the quarter, compared to analysts’ expectations of $358.40 million. During the same quarter in the previous year, the business earned $0.12 EPS. CAVA Group’s revenue for the quarter was up 21.0% on a year-over-year basis.

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

• CAVA revenue rose 22.1% to $353.7 million, while same-restaurant sales increased 3.1% with slightly positive traffic. Management estimated produce-related concerns weighed on quarterly comps by 150 basis points and said sales strengthened as those concerns eased.
• The company ended the quarter with 500 restaurants, after opening 24 net new locations, and said new restaurants continued to reach approximately 100% productivity. For 2027, management expects at least 16% unit-count growth, supported by a healthy real estate pipeline.
• CAVA raised its full-year outlook to 76–78 new restaurant openings, 6%–7% same-restaurant sales growth, and $184–$189 million in Adjusted EBITDA. Management said the midpoint of its sales range represents its highest-probability expectation.
• Restaurant-level profit margin fell to 23.4% from 24.6%, pressured by wage and labor investments, a higher mix of third-party delivery, and repairs and maintenance. Net income also declined to $13.2 million from $14.7 million; CAVA expects food costs as a percentage of revenue to rise in Q4, partly due to fuel surcharges and pre-marinated chicken.

CAVA Group Trading Down 1.8%

Shares of CAVA traded down $1.09 during trading hours on Friday, reaching $58.92. 4,410,401 shares of the company’s stock traded hands, compared to its average volume of 3,400,370. CAVA Group has a 12 month low of $43.41 and a 12 month high of $98.79. The stock has a market cap of $6.88 billion, a PE ratio of 109.11, a price-to-earnings-growth ratio of 4.94 and a beta of 1.75. The firm’s 50 day simple moving average is $55.88 and its 200-day simple moving average is $71.14.

Key Stories Impacting CAVA Group

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

• Positive Sentiment: CAVA raised its same-restaurant sales outlook after moving past the cyclospora-related headwind. Same-restaurant sales increased 3.1% in Q3, and the company said it continued gaining market share. Cava Group Raises Same-Restaurant Sales View on Higher Revenue
• Positive Sentiment: The company opened 24 net new restaurants in Q3 and projected 76–78 net new openings for 2026, alongside adjusted EBITDA of $184 million–$189 million. Expansion supports its longer-term growth story. CAVA 2026 Outlook
• Neutral Sentiment: Q3 revenue grew 21% year over year to $356.44 million, but was slightly below consensus. CAVA Q3 Results
• Negative Sentiment: CAVA reported Q3 EPS of $0.11 versus the $0.12 estimate, and revenue of $356.44 million versus the roughly $358.4 million consensus. Earnings also fell from $0.12 a year earlier, contributing to investor concerns. CAVA Q3 Misses
• Negative Sentiment: Management cited broader industry pressures, while a Seeking Alpha analysis flagged traffic and margin slippage as risks. These concerns may temper the positive sales outlook. Margin and Traffic Analysis
• Negative Sentiment: Several analysts lowered price targets after the results. BNP Paribas Exane cut its target to $62 and moved to neutral; other firms also reduced targets, though some retained bullish ratings. BNP Paribas Exane Rating

CAVA Group announced that its Board of Directors has initiated a share buyback plan on Friday, September 18th that allows the company to repurchase $100 million in outstanding shares. This buyback authorization allows the company to buy up to 1.7% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Wolfe Research upped their price target on shares of CAVA Group from $79.00 to $82.00 and gave the company an “outperform” rating in a research note on Wednesday, August 12th. DA Davidson cut their price objective on shares of CAVA Group from $84.00 to $75.00 and set a “neutral” rating for the company in a report on Thursday, August 13th. Roth Capital reiterated a “buy” rating and issued a $95.00 price objective (down from $106.00) on shares of CAVA Group in a research note on Wednesday, August 12th. Morgan Stanley raised shares of CAVA Group from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $86.00 to $90.00 in a report on Wednesday, July 15th. Finally, Melius Research raised shares of CAVA Group from a “hold” rating to a “buy” rating and set a $95.00 target price on the stock in a report on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat, CAVA Group currently has a consensus rating of “Moderate Buy” and a consensus price target of $83.88.

Insider Buying and Selling at CAVA Group

In related news, insider Douglas Thompson bought 6,500 shares of the stock in a transaction that occurred on Monday, August 31st. The shares were acquired at an average cost of $66.52 per share, with a total value of $432,380.00. Following the completion of the purchase, the insider directly owned 19,371 shares of the company’s stock, valued at $1,288,558.92. This trade represents a 50.50% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 6.70% of the company’s stock.

CAVA Group Company Profile

CAVA Group, Inc operates CAVA, a fast-casual restaurant brand serving Mediterranean-inspired food in the United States. Its menu includes customizable bowls and pitas, salads, dips, spreads, grilled proteins, and other Mediterranean dishes, with options designed to accommodate a range of dietary preferences.

The company’s restaurants generally use an assembly-line format that allows customers to build meals from a selection of ingredients and sauces. CAVA also offers its branded dips, spreads, and other products through select grocery and retail channels, extending the brand beyond its restaurant locations.

CAVA was founded in 2010 by Dimitri Moshovitis, Ike Grigoropoulos, and Ted Xenohristos.