CAVA Group, Inc. (CAVA) AI Stock Analysis

• Market Cap: $5.40B
• Dividend Yield: N/A
• Average Volume (3M): 4.47M
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.90
• Revenue Growth: 23.93%
• EPS Growth: 153.50%
• Country: US
• Employees: 10,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.12
• Shares Outstanding: 115,986,120
• 10 Day Avg. Volume: 6,076,432
• 30 Day Avg. Volume: 4,466,264
• PEG Ratio: 0.12
• Price to Book (P/B): 18.32
• Price to Sales (P/S): 13.23
• P/FCF Ratio: 240.96
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 8.84
• Enterprise Value/Gross Profit: 34.19
• Enterprise Value/Ebitda: 64.08
• 1Y Price Target: $72.13
• Price Target Upside: 48.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 0.55
• Revenue Forecast (FY): $1.18B

• Rating: 69 Neutral
• Price Target: $57.00 ▲(17.19% Upside)

CAVA's overall stock score is driven by strong financial performance and positive earnings call highlights, including revenue growth and strategic initiatives. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests valuation concerns. Macroeconomic pressures and increased expenses also pose challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

Restaurant Expansion

Expanding restaurant footprint enhances market presence and revenue potential, demonstrating scalability and strategic growth execution.

Menu Innovation

Innovative menu offerings can attract new customers and increase sales, reinforcing brand differentiation and customer loyalty.

Negative Factors

Macroeconomic Pressures

Macroeconomic challenges can dampen consumer spending, potentially slowing sales growth and impacting profitability.

Increased Operating Expenses

Rising operating costs can pressure margins, reducing profitability and limiting financial flexibility for future investments.

Higher Preopening Expenses

Increased preopening costs may strain resources and affect short-term profitability, impacting cash flow and investment capacity.

CAVA Group, Inc. Business Overview & Revenue Model

Company Description

CAVA Group, Inc. (CAVA) is a fast-casual restaurant chain that specializes in Mediterranean-inspired cuisine. Founded in 2006, the company operates restaurants primarily in the United States, offering a menu that features customizable grain bowls, salads, and pitas made with fresh ingredients. CAVA aims to provide a healthy and flavorful dining experience, catering to the growing demand for nutritious fast-casual options. The company has also expanded its product line to include dips and spreads sold in grocery stores, further establishing its presence in the food industry.

How the Company Makes Money

CAVA generates revenue primarily through its restaurant operations, which include in-store dining, takeout, and catering services. The company makes money by selling its food and beverage offerings directly to consumers at its locations. In addition to in-store sales, CAVA has developed a line of packaged dips and spreads that are distributed through retail grocery channels, creating an additional revenue stream. Strategic partnerships with food distributors and suppliers help optimize costs and ensure a steady supply of high-quality ingredients, contributing to the company's profitability. CAVA also benefits from an increasing consumer trend towards healthier eating, which drives traffic to its restaurants and boosts sales.

CAVA Group, Inc. Financial Statement Overview

Summary

CAVA Group, Inc. demonstrates strong financial performance with impressive revenue growth and profitability improvements. The balance sheet reflects a healthy equity position but requires careful debt management. Cash flows are robust, supporting continued investments and operations.

Income Statement

CAVA Group, Inc. has demonstrated strong revenue growth, notably a TTM revenue of $1.30 billion, reflecting a significant increase over recent years. Gross profit margin has improved, reaching approximately 22.8% in TTM, indicating effective cost management. Net profit margin is also robust at 12.04%, showing substantial profitability. The company has improved its EBIT and EBITDA margins, reaching 5.25% and 12.36% respectively, suggesting strong operational performance.

Balance Sheet

The balance sheet shows a solid equity position with an equity ratio of 59.12% in TTM, which indicates a strong reliance on equity financing. However, the debt-to-equity ratio has increased to 0.57, suggesting careful monitoring is needed to manage leverage. Return on equity is a strong 21.49%, highlighting effective use of equity in generating profits.

Cash Flow

CAVA exhibits a healthy cash flow profile with positive free cash flow and a free cash flow growth rate of 5.11% in TTM. The operating cash flow to net income ratio stands at 1.28, indicating solid cash generation relative to reported net income. Free cash flow to net income ratio is 0.36, suggesting that while profitable, investments and other cash uses are significant.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	856.26M	963.71M	728.70M
Gross Profit	221.39M	241.81M	180.35M
EBITDA	118.12M	121.31M	78.86M
Net Income	62.04M	130.32M	13.28M
Balance Sheet
Total Assets	1.29B	1.17B	983.76M
Cash, Cash Equivalents and Short-Term Investments	385.78M	366.12M	332.43M
Total Debt	433.84M	378.71M	336.20M
Total Liabilities	540.92M	474.10M	412.95M
Stockholders Equity	750.71M	695.57M	570.80M
Cash Flow
Free Cash Flow	45.27M	52.90M	-41.70M
Operating Cash Flow	142.77M	161.03M	97.10M
Investing Cash Flow	-197.93M	-108.13M	-138.81M
Financing Cash Flow	2.62M	-19.20M	335.01M

CAVA Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAVA, the sentiment is Negative. The current price of 48.64 is below the 20-day moving average (MA) of 59.04, below the 50-day MA of 61.88, and below the 200-day MA of 83.46, indicating a bearish trend. The MACD of -4.01 indicates Positive momentum. The RSI at 26.37 is Positive, neither overbought nor oversold. The STOCH value of 7.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CAVA.

CAVA Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAVA	69 Neutral	$5.40B	41.93	19.84%	―	23.93%	153.50%
CAKE	68 Neutral	$2.34B	14.25	39.14%	2.14%	4.90%	27.14%
EAT	67 Neutral	$4.54B	10.64	249.07%	―	23.18%	138.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SHAK	60 Neutral	$3.92B	89.50	8.83%	―	13.49%	402.23%
WING	58 Neutral	$6.80B	39.93	―	0.47%	15.56%	79.02%
SG	43 Neutral	$738.82M	―	-26.47%	―	2.43%	-23.25%

CAVA Group, Inc. Corporate Events

CAVA Group Reports Strong Q3 2025 Revenue Growth

CAVA Group, Inc. is a leading Mediterranean fast-casual restaurant brand known for its healthful and flavorful offerings, operating in the limited-service restaurant sector with a focus on health and wellness. In its third quarter of 2025, CAVA Group reported a 20% increase in revenue, reaching $289.8 million, driven by the opening of 17 new restaurants and a same-restaurant sales growth of 1.9%. The company maintained a restaurant-level profit margin of 24.6%, despite facing macroeconomic challenges. Key financial highlights include a net income of $14.7 million and an adjusted EBITDA of $40 million, marking a 19.6% increase from the previous year. The digital revenue mix stood at 37.6%, reflecting the company’s strong digital presence. Looking ahead, CAVA Group remains focused on expanding its restaurant footprint and enhancing its brand resonance across the country, with a cautious outlook on same-restaurant sales growth and profit margins for the full year 2025.

CAVA Group’s Earnings Call Highlights Strong Growth

CAVA Group, Inc. recently held its earnings call, revealing a positive outlook despite some challenges. The company showcased strong revenue and adjusted EBITDA growth, driven by new restaurant openings and innovative menu developments. While same-restaurant sales growth faced hurdles due to macroeconomic factors, CAVA remains optimistic about its long-term growth, supported by operational enhancements and brand-building efforts.

CAVA Group Reports Strong Q2 2025 Financial Results

CAVA Group, Inc. is a leading Mediterranean fast-casual restaurant brand known for its healthful and flavorful offerings, operating within the limited-service restaurant sector and the health and wellness food category. In its second quarter of 2025, CAVA Group reported a significant revenue growth of 20.3% year-over-year, driven by the opening of 16 new restaurants and a same-restaurant sales growth of 2.1%. The company achieved a restaurant-level profit margin of 26.3% and reported a net income of $18.4 million, slightly down from the previous year. Key financial highlights include a digital revenue mix of 37.3% and an adjusted EBITDA of $42.1 million, reflecting a 22.6% increase from the prior year. Looking ahead, CAVA Group remains focused on expanding its restaurant footprint with a target of reaching 1,000 locations by 2032, while maintaining its commitment to delivering strong financial performance amid a dynamic market environment.