CAVA Group, Inc. (CAVA) AI Stock Analysis

CAVA Group, Inc. manages a network of Mediterranean restaurants specializing in salads, dips, spreads, toppings, and dressings. Founded in 2006 and based in Washington, D.C., the company serves diners through both physical restaurant locations and online food ordering services. Additionally, CAVA extends its reach into grocery retail by distributing its signature packaged products through Whole Foods Markets and other retail stores. Employing 13,480 people, the company focuses on fresh ingredients, authentic culinary offerings, and continuous footprint expansion across the food industry.

CAVA increased annual revenue from $500.1M in FY2021 to $1.18B in FY2025, reflecting a 5-year revenue CAGR of 4.8%. After net losses of -$37.4M in FY2021 and -$59.0M in FY2022, the company turned profitable with net income of $13.3M in FY2023 and $130.3M in FY2024. Net income dropped to $63.7M in FY2025 as gross margin contracted from 25.1% to 18.4%, while operating margin reached 6.7%. For the trailing twelve months ended June 30, 2026, revenue stood at $1.37B with a profit margin of 4.8%. In the latest quarter, quarterly revenue grew 31.3% year-over-year and quarterly earnings rose 19.8%.

As of June 30, 2026, CAVA held $435.6M in cash and short-term investments against total debt of $520.7M, resulting in net debt of $85.1M. The company maintains solid liquidity with a current ratio of 2.48 and a debt-to-equity ratio of 0.62 on shareholders' equity of $841.3M. In FY2025, operating cash flow reached $184.8M and free cash flow totaled $26.1M, after accounting for $158.7M in capital expenditures. Five-year share count increased 11939.0% following its 2023 initial public offering.

At $57.25 per share, CAVA has a market capitalization of $6.69B and an enterprise value of $6.29B. The stock trades at a trailing P/E of 104.1x and a forward P/E of 70.4x, well above the median of its US-listed Consumer Cyclical peers at 18.0x and 14.1x, respectively. It also trades at an EV/EBITDA of 34.3x compared to the peer median of 11.1x. Over the past year, CAVA shares declined 9.6%, trailing the S&P 500 benchmark return of 16.8%.

Wall Street analysts cover CAVA with 16 Strong Buy, 3 Buy, 8 Hold, 0 Sell, and 1 Strong Sell recommendations. The consensus mean price target is $83.67, representing a 46.1% upside over the last close of $57.25. For the fiscal year ending December 31, 2026, analysts estimate EPS of $0.55 on revenue of $1.50B. For the following year, 27 analysts project EPS of $0.74 on revenue of $1.82B. CAVA beat EPS consensus estimates in 3 of the last 4 quarters, with its next earnings report scheduled for November 4, 2026.

This page is an AI-written research summary of CAVA Group, Inc. (CAVA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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