CAVA Group, Inc. (CAVA) AI Stock Analysis

• Market Cap: $10.40B
• Dividend Yield: N/A
• Average Volume (3M): 4.00M
• Price to Earnings (P/E): 75.0
• Beta (1Y): 2.10
• Revenue Growth: 32.11%
• EPS Growth: 378.62%
• Country: US
• Employees: 10,300
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Restaurants
• EPS (TTM): 0.22
• Shares Outstanding: 115,659,966
• 10 Day Avg. Volume: 3,514,523
• 30 Day Avg. Volume: 3,995,059
• PEG Ratio: 8.18
• Price to Book (P/B): 14.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 200.40
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.57
• Enterprise Value/Gross Profit: 35.02
• Enterprise Value/Ebitda: 21.72
• 1Y Price Target: $109.71
• Price Target Upside: 19.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 79 Outperform
• Price Target: $103.00 ▲(12.34%Upside)

CAVA's strong financial performance and positive sentiment from the earnings call are significant strengths, contributing to a high score. Technical analysis suggests positive momentum but indicates caution due to potential overvaluation. The lack of a dividend yield also affects valuation appeal.

Positive Factors

Brand Growth

CAVA's broad consumer appeal and increasing brand awareness have led to impressive new unit productivity and profitability.

Financial Performance

CAVA's latent pricing power, whitespace opportunities, and potential P&L efficiencies can drive sustainable earnings growth and/or positive EPS revisions over time.

Negative Factors

Short-term Sales

2Q comps could fall modestly below the Street mean, primarily due to the difficult lap created by the successful launch of Grilled Steak in early June 2024.

Valuation Risks

The analysis provides upside to the current share price in most scenarios, except when using higher discount rates and lower multiples.

CAVA Group, Inc. Business Overview & Revenue Model

Company Description

CAVA Group, Inc. owns and operates a chain of Mediterranean restaurants. The company offers salads, dips, spreads, toppings, and dressings. It sells its products through whole food markets and grocery stores. The company also provides online food ordering services. Cava Group, Inc. was founded in 2006 and is based in Washington, District of Columbia.

How the Company Makes Money

CAVA Group, Inc. generates revenue primarily through its chain of fast-casual restaurants, where customers pay for dine-in and take-out meals. The company's revenue model focuses on direct sales of its Mediterranean-inspired menu items, leveraging its ability to create customizable dining experiences that attract a broad customer base. Additionally, CAVA benefits from strategic partnerships with delivery services and has integrated digital ordering platforms to enhance customer convenience and increase sales. The company's emphasis on using fresh, high-quality ingredients allows it to maintain a premium pricing strategy, further contributing to its revenue. Moreover, CAVA's expansion strategy, including new restaurant openings and acquisitions, plays a crucial role in growing its market presence and boosting earnings.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	963.71M	728.70M	564.12M	500.07M
Gross Profit	241.81M	180.35M	55.26M	37.62M
EBITDA	103.79M	78.86M	-16.12M	12.07M
Net Income	130.32M	13.28M	-58.99M	-37.39M
Balance Sheet
Total Assets	1.17B	983.76M	654.43M	362.83M
Cash, Cash Equivalents and Short-Term Investments	366.12M	332.43M	39.13M	140.33M
Total Debt	378.71M	336.20M	314.73M	15.34M
Total Liabilities	474.10M	412.95M	440.63M	93.55M
Stockholders Equity	695.57M	570.80M	213.81M	269.29M
Cash Flow
Free Cash Flow	52.90M	-41.70M	-98.28M	-53.02M
Operating Cash Flow	161.03M	97.10M	6.04M	3.39M
Investing Cash Flow	-108.13M	-138.81M	-104.16M	-56.31M
Financing Cash Flow	-19.20M	335.01M	-3.08M	143.15M

CAVA Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAVA, the sentiment is Positive. The current price of 91.69 is above the 20-day moving average (MA) of 86.02, above the 50-day MA of 84.17, and below the 200-day MA of 107.44, indicating a neutral trend. The MACD of 2.23 indicates Negative momentum. The RSI at 63.86 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAVA.

CAVA Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAVA	79 Outperform	$10.40B	75.02	21.73%	―	32.11%	378.62%
CAKE	74 Outperform	$3.27B	20.72	46.60%	1.58%	4.42%	48.23%
SHAK	70 Outperform	$5.88B	479.53	2.70%	―	14.07%	-47.47%
FWRG	69 Neutral	$1.12B	105.28	1.86%	―	14.43%	-53.71%
SG	67 Neutral	$1.79B	―	-19.79%	―	11.10%	18.05%
WING	66 Neutral	$8.95B	53.82	-16.09%	0.34%	30.98%	112.65%
Sector *	64 Neutral	£1.74B	10.38	6.12%	253.66%	0.55%	-33.66%

CAVA Group, Inc. Corporate Events

CAVA Group Holds Annual Stockholders Meeting

On June 20, 2025, CAVA Group, Inc. held its annual meeting of stockholders where several key decisions were made. The stockholders approved the election of three Class II directors to the Board, endorsed the executive compensation plan, decided on an annual advisory vote for executive compensation, and ratified Deloitte & Touche LLP as the independent accounting firm for the year ending December 28, 2025.

The most recent analyst rating on (CAVA) stock is a Buy with a $148.00 price target. To see the full list of analyst forecasts on CAVA Group, Inc. stock, see the CAVA Stock Forecast page.