The stock of CAVA Group (CAVA) is up 10% on May 20 after the Mediterranean restaurant chain reported strong first-quarter financial results and raised its forward guidance.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
The company reported earnings per share (EPS) of $0.20, which was ahead of analysts’ consensus expectations of $0.17. Revenue in the year’s first quarter totaled $438.3 million, topping Wall Street forecasts that called for $418.5 million.
Same-stores sales across the restaurant chain rose 9.7% in Q1, well above analyst expectations of 6.2% growth. Management said the growth was largely driven by guest traffic increasing 6.8% year-over-year. Average unit volume rose to $3 million from $2.9 million the previous year.
CAVA Group’s restaurant count. Source: The Fly
New Restaurant Openings
On an earnings call with analysts and media, Cava Group executives noted that the restaurant chain opened 20 new locations during the year’s first quarter, bringing its total restaurant count to 459, up 20% from a year earlier.
CAVA also raised its 2026 outlook. The company now expects same-store sales growth of 4.5% to 6.5%, up from an earlier forecast of 3% to 5% growth. The company also raised its expected number of new restaurant openings this year to 77 locations from a previous forecast of 74.
Is CAVA Stock a Buy?
CAVA Group’s stock has a consensus Moderate Buy rating among 25 Wall Street analysts. That rating is based on 15 Buy, nine Hold, and one Sell recommendations issued in the last three months. The average CAVA price target of $92.86 implies 13% upside from current levels. These ratings could change after the company’s financial results.
