CAVA Group (NYSE:CAVA) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

CAVA Group (NYSE:CAVA) released its quarterly earnings data on Wednesday. The company reported $0.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.01), FiscalAI reports. The company had revenue of $356.44 million for the quarter, compared to analyst estimates of $358.40 million. CAVA Group had a return on equity of 8.28% and a net margin of 4.82%. CAVA Group’s revenue for the quarter was up 21.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.12 earnings per share.

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 Stock Performance

Shares of CAVA Group stock traded down $5.98 during midday trading on Thursday, hitting $56.00. The company had a trading volume of 5,064,960 shares, compared to its average volume of 3,376,542. CAVA Group has a 52-week low of $43.41 and a 52-week high of $98.79. The stock has a market capitalization of $6.54 billion, a P/E ratio of 101.52, a P/E/G ratio of 4.81 and a beta of 1.75. The company has a 50 day moving average of $56.05 and a 200 day moving average of $71.20.

Analyst Ratings Changes

Several research firms have recently issued reports on CAVA. Compass Point raised shares of CAVA Group to a “neutral” rating in a research note on Monday, September 14th. DA Davidson dropped their target price on CAVA Group from $84.00 to $75.00 and set a “neutral” rating on the stock in a report on Thursday, August 13th. Roth Capital reiterated a “buy” rating and issued a $95.00 target price (down from $106.00) on shares of CAVA Group in a research note on Wednesday, August 12th. KeyCorp lowered their price target on shares of CAVA Group from $80.00 to $75.00 and set an “overweight” rating on the stock in a report on Thursday. Finally, Seaport Research Partners started coverage on CAVA Group in a research note on Wednesday, September 16th. They issued a “buy” rating and a $58.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $84.12.

Key CAVA Group News

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

• Positive Sentiment: CAVA raised its full-year same-restaurant sales outlook after quarterly comparable sales grew 3.1%, citing continued market-share gains and a reduced drag from the cyclospora outbreak. Wall Street Journal article
• Positive Sentiment: The company’s 2026 outlook calls for 76–78 net new restaurant openings and adjusted EBITDA of $184 million to $189 million, supporting its growth story. Seeking Alpha article
• Neutral Sentiment: KeyCorp lowered its price target to $75 from $80 and TD Cowen cut its target to $76 from $78; both firms maintained bullish ratings, Overweight and Buy, respectively. The reductions temper the positive ratings but still imply substantial upside from the prices cited in the reports. KeyCorp analyst recommendations TD Cowen analyst recommendations
• Negative Sentiment: Third-quarter adjusted earnings were $0.11 per share versus the $0.12 consensus, while revenue of $356.44 million also came in below expectations of about $358.4 million. Revenue still grew 21% year over year, but the double miss likely weighed on shares. Benzinga article
• Negative Sentiment: Management also pointed to broader pressures across the restaurant industry, raising concern that consumer and operating conditions could challenge performance despite the stronger sales outlook. Benzinga article

CAVA Group announced that its board has authorized a stock repurchase program on Friday, September 18th that authorizes the company to buy back $100 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 1.7% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at CAVA Group

In related news, insider Douglas Thompson bought 6,500 shares of the company’s stock in a transaction 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 acquisition, the insider owned 19,371 shares of the company’s stock, valued at $1,288,558.92. The trade was a 50.50% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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.