CAVA Group (NYSE:CAVA) Posts Earnings Results, Beats Expectations By $0.03 EPS

CAVA Group (NYSE:CAVA) released its earnings results on Tuesday. The company reported $0.20 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03, FiscalAI reports. The company had revenue of $438.27 million for the quarter, compared to analysts’ expectations of $418.46 million. CAVA Group had a return on equity of 8.04% and a net margin of 4.79%.The business’s revenue for the quarter was up 32.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.22 EPS.

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

• CAVA posted a strong Q1 2026 with revenue up 32.2% to $434.4 million, same-restaurant sales up 9.7%, and traffic growth of 6.8%.
• New unit performance remained very strong, with 20 net new restaurants added in the quarter, bringing the total to 459 locations, and management said new restaurant productivity was above 100%.
• Adjusted EBITDA rose 37.6% year over year to $61.7 million, and the company generated $15.5 million of free cash flow while ending the quarter with zero debt and $403 million of cash and investments.
• CAVA launched its first-ever seafood item, Pomegranate Glazed Salmon, and said it has been performing in line with test expectations, though it also warned the item will be a margin headwind for the rest of the year.
• The company raised full-year 2026 guidance, now expecting 75-77 new openings, 4.5%-6.5% same-restaurant sales growth, and $181 million-$191 million of Adjusted EBITDA.

CAVA Group Stock Performance

Shares of CAVA Group stock opened at $80.28 on Thursday. CAVA Group has a 52-week low of $43.41 and a 52-week high of $98.79. The stock’s 50-day simple moving average is $84.95 and its 200 day simple moving average is $69.46. The stock has a market capitalization of $9.35 billion, a P/E ratio of 154.39, a P/E/G ratio of 5.49 and a beta of 1.90.

More CAVA Group News

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

• Positive Sentiment: CAVA reported Q1 earnings of $0.20 per share, beating estimates, while revenue of $438.3 million also topped forecasts and rose about 32% year over year, signaling continued strong demand. CAVA Group Reports First Quarter 2026 Results
• Positive Sentiment: The company raised its 2026 outlook, including plans for 75-77 net new openings and same-restaurant sales growth of 4.5%-6.5%, which suggests management sees momentum continuing. CAVA outlines raised FY2026 plan
• Positive Sentiment: Same-restaurant sales growth was 9.7%, driven mainly by traffic gains, while operating income rose 60% year over year and restaurant-level profit margin held near 25%, showing healthy operating leverage. CAVA Group: Why A Stellar Q1 Doesn’t Justify A 150x Multiple
• Positive Sentiment: Several Wall Street firms turned more constructive after the results, with price targets lifted by Telsey Advisory Group, Morgan Stanley, Robert W. Baird, Stifel, Roth Mkm, and TD Cowen, adding to bullish sentiment around the stock. Cava Analysts Boost Their Forecasts Following Upbeat Q1 Results
• Neutral Sentiment: Some commentary praised the growth story but argued the valuation remains expensive at roughly 150x earnings, which could limit upside if execution slows. CAVA Group: Why A Stellar Q1 Doesn’t Justify A 150x Multiple

Analyst Ratings Changes

A number of research firms have recently commented on CAVA. Sanford C. Bernstein reiterated an “outperform” rating and set a $95.00 target price on shares of CAVA Group in a research note on Wednesday. Citigroup upped their price target on CAVA Group from $75.00 to $92.00 and gave the company a “neutral” rating in a research report on Monday, May 4th. UBS Group lifted their price objective on CAVA Group from $75.00 to $85.00 and gave the stock a “neutral” rating in a report on Tuesday, May 12th. Stifel Nicolaus boosted their price objective on CAVA Group from $90.00 to $105.00 and gave the company a “buy” rating in a research note on Wednesday. Finally, Guggenheim started coverage on CAVA Group in a research note on Thursday, March 26th. They issued a “buy” rating and a $100.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $91.85.

Insider Transactions at CAVA Group

In related news, insider Theodoros Xenohristos sold 9,044 shares of the business’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $79.75, for a total value of $721,259.00. Following the sale, the insider directly owned 327,882 shares in the company, valued at approximately $26,148,589.50. The trade was a 2.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 6.70% of the company’s stock.

Institutional Investors Weigh In On CAVA Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CAVA. Marshall Wace LLP increased its position in shares of CAVA Group by 689.8% during the fourth quarter. Marshall Wace LLP now owns 1,387,774 shares of the company’s stock valued at $81,448,000 after buying an additional 1,212,068 shares during the period. Primecap Management Co. CA increased its position in shares of CAVA Group by 1,378.3% during the fourth quarter. Primecap Management Co. CA now owns 1,260,250 shares of the company’s stock valued at $73,964,000 after buying an additional 1,175,000 shares during the period. Morgan Stanley increased its position in shares of CAVA Group by 33.7% during the fourth quarter. Morgan Stanley now owns 3,318,894 shares of the company’s stock valued at $194,786,000 after buying an additional 835,628 shares during the period. Alliancebernstein L.P. increased its position in shares of CAVA Group by 58.7% during the second quarter. Alliancebernstein L.P. now owns 1,353,058 shares of the company’s stock valued at $113,968,000 after buying an additional 500,367 shares during the period. Finally, Goldman Sachs Group Inc. increased its position in shares of CAVA Group by 74.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,112,120 shares of the company’s stock valued at $65,270,000 after buying an additional 473,206 shares during the period. 73.15% of the stock is currently owned by institutional investors.

About CAVA Group

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.