CAVA Group, Inc. (CAVA) AI Stock Analysis

• Market Cap: $5.76B
• Dividend Yield: N/A
• Average Volume (3M): 4.65M
• Price to Earnings (P/E): 42.8
• Beta (1Y): 1.82
• 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: 4,612,265
• 30 Day Avg. Volume: 4,645,956
• 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: 1.31
• Enterprise Value/Revenue: 6.99
• Enterprise Value/Gross Profit: 27.74
• Enterprise Value/Ebitda: 53.68
• 1Y Price Target: $72.31
• Price Target Upside: 47.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 0.53
• Revenue Forecast (FY): $1.17B

• Rating: 69 Neutral
• Price Target: $54.00 ▲(10.45% Upside)

CAVA's overall stock score reflects strong financial performance and strategic growth initiatives, which are offset by bearish technical indicators and a high valuation. The earnings call provided positive insights into revenue growth and expansion plans, but macroeconomic challenges and increased expenses pose risks.

Positive Factors

Revenue Growth

CAVA's strong revenue growth indicates robust demand for its offerings and effective expansion strategies, supporting long-term business sustainability.

Restaurant Expansion

The expansion of restaurant locations enhances CAVA's market presence and potential customer base, driving future revenue and brand recognition.

Menu Innovation

New menu items demonstrate CAVA's ability to innovate and adapt to consumer preferences, which can sustain customer interest and competitive advantage.

Negative Factors

Increased Operating Expenses

Rising operating expenses can pressure margins and reduce profitability, challenging CAVA's ability to maintain cost efficiency in the long term.

Consumer Pressure

Economic pressures on consumers may impact discretionary spending, potentially affecting CAVA's sales and growth in a competitive market.

Higher Preopening Expenses

Increased preopening expenses could strain financial resources and impact short-term profitability, affecting CAVA's expansion strategy.

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	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.08B	963.71M	728.70M	564.12M	500.07M
Gross Profit	272.82M	241.81M	180.35M	97.98M	82.15M
EBITDA	141.00M	121.31M	78.86M	27.95M	12.07M
Net Income	140.66M	130.32M	13.28M	-58.99M	-37.39M
Balance Sheet
Total Assets	1.29B	1.17B	983.76M	583.88M	362.19M
Cash, Cash Equivalents and Short-Term Investments	385.78M	366.12M	332.43M	39.13M	140.33M
Total Debt	433.84M	378.71M	336.20M	314.73M	15.34M
Total Liabilities	540.92M	474.10M	412.95M	1.03B	755.22M
Stockholders Equity	750.71M	695.57M	570.80M	-448.50M	-393.02M
Cash Flow
Free Cash Flow	47.38M	52.90M	-41.70M	-98.28M	-53.02M
Operating Cash Flow	172.63M	161.03M	97.10M	6.04M	3.39M
Investing Cash Flow	-225.67M	-108.13M	-138.81M	-104.16M	-56.31M
Financing Cash Flow	-535.00K	-19.20M	335.01M	-3.08M	143.15M

CAVA Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 48.89
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 48.89 is above the 20-day moving average (MA) of 48.44, below the 50-day MA of 57.05, and below the 200-day MA of 77.35, indicating a neutral trend. The MACD of -2.85 indicates Negative momentum. The RSI at 43.62 is Neutral, neither overbought nor oversold. The STOCH value of 76.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CAVA.

CAVA Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EAT	70 Neutral	$6.74B	15.74	249.07%	―	23.18%	138.17%
CAVA	69 Neutral	$5.76B	42.80	19.84%	―	23.93%	153.50%
CAKE	67 Neutral	$2.38B	14.50	39.14%	2.26%	4.90%	27.14%
WING	65 Neutral	$7.36B	43.22	―	0.43%	15.56%	79.02%
SHAK	62 Neutral	$3.73B	85.93	8.83%	―	13.49%	402.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SG	45 Neutral	$768.24M	―	-26.47%	―	2.43%	-23.25%

CAVA Group, Inc. Corporate Events

CAVA Group’s Earnings Call Highlights Robust Growth

CAVA Group, Inc. recently held its earnings call, revealing a generally positive sentiment surrounding its financial performance and strategic initiatives. The company showcased impressive revenue growth and successful expansion efforts, although it acknowledged challenges posed by macroeconomic pressures affecting same-restaurant sales and rising operating expenses.

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.