CAVA Group (NYSE:CAVA) Issues Earnings Results, Beats Estimates By $0.01 EPS

CAVA Group (NYSE:CAVA) released its quarterly earnings results on Tuesday. The company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.01, FiscalAI reports. CAVA Group had a return on equity of 8.43% and a net margin of 5.40%.The company had revenue of $274.99 million for the quarter, compared to analysts’ expectations of $268.04 million. During the same period in the prior year, the firm earned $0.05 earnings per share. The firm’s revenue was up 20.9% compared to the same quarter last year.

Here are the key takeaways from CAVA Group’s conference call:

• Record 2025 financials: CAVA surpassed $1 billion in revenue, delivered $152.8M adjusted EBITDA and $63.7M GAAP net income, and finished the quarter with $393M cash and zero debt, providing strong liquidity.
• Aggressive expansion with healthy new-unit productivity: Opened 72 net new restaurants in 2025 to end with 439 locations, plan 74–76 openings in 2026 and remain on track for a long-term 1,000-unit target, with 2025 cohort AUVs trending above $3M and new-unit productivity >100%.
• 2026 guidance and menu impact: Management guides 3%–5% same-restaurant sales for 2026, implemented a ~1.4% menu price in Jan, and will introduce pomegranate-glazed salmon (penny-profit neutral but a ~100 bps restaurant-margin headwind).
• Operational and people investments to scale: New COO hire, rollout of AGM roles (60% filled), field leadership reorganization, KDS deployed in 370 restaurants (remaining retrofits this year) and TurboChef ovens companywide to improve execution and consistency.
• Rising equity and tax-related expenses: Stock-based compensation expected to increase to $22–24M in 2026 with an accelerated vesting design, and the effective tax rate is projected to rise to ~25%–30% (from 10% in 2025), which will pressure reported earnings timing.

CAVA Group Trading Down 3.0%

Shares of CAVA traded down $2.52 during mid-day trading on Friday, hitting $82.22. 2,930,472 shares of the company traded hands, compared to its average volume of 3,974,313. The business has a 50-day moving average of $65.88 and a 200 day moving average of $61.85. CAVA Group has a one year low of $43.41 and a one year high of $101.50. The stock has a market capitalization of $9.54 billion, a price-to-earnings ratio of 152.26, a PEG ratio of 6.73 and a beta of 2.41.

Insider Buying and Selling at CAVA Group

In other news, insider Theodoros Xenohristos sold 1,039 shares of the business’s stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $62.14, for a total value of $64,563.46. Following the completion of the transaction, the insider owned 332,205 shares of the company’s stock, valued at $20,643,218.70. The trade was a 0.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Kenneth Robert Bertram sold 994 shares of the firm’s stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $62.14, for a total value of $61,767.16. Following the sale, the insider directly owned 49,122 shares in the company, valued at $3,052,441.08. The trade was a 1.98% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 39,055 shares of company stock valued at $2,572,303 over the last 90 days. Company insiders own 6.80% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in CAVA. Bridgewater Associates LP grew its position in shares of CAVA Group by 2.4% in the fourth quarter. Bridgewater Associates LP now owns 6,827 shares of the company’s stock valued at $401,000 after purchasing an additional 163 shares during the last quarter. Advisors Asset Management Inc. grew its holdings in CAVA Group by 53.5% in the 4th quarter. Advisors Asset Management Inc. now owns 694 shares of the company’s stock valued at $41,000 after buying an additional 242 shares in the last quarter. Brown Advisory Inc. increased its position in CAVA Group by 9.3% during the 2nd quarter. Brown Advisory Inc. now owns 2,979 shares of the company’s stock worth $251,000 after buying an additional 253 shares during the period. State Board of Administration of Florida Retirement System boosted its position in shares of CAVA Group by 0.4% in the fourth quarter. State Board of Administration of Florida Retirement System now owns 77,227 shares of the company’s stock valued at $4,532,000 after acquiring an additional 290 shares during the period. Finally, Horizon Investments LLC grew its stake in shares of CAVA Group by 47.9% in the third quarter. Horizon Investments LLC now owns 1,040 shares of the company’s stock valued at $63,000 after acquiring an additional 337 shares in the last quarter. Institutional investors and hedge funds own 73.15% of the company’s stock.

Wall Street Analyst Weigh In

CAVA has been the subject of several recent research reports. Citigroup upped their target price on CAVA Group from $74.00 to $75.00 and gave the stock a “neutral” rating in a research report on Wednesday. UBS Group lifted their price objective on shares of CAVA Group from $69.00 to $75.00 and gave the stock a “neutral” rating in a report on Wednesday. The Goldman Sachs Group reiterated a “neutral” rating and set a $68.00 price target on shares of CAVA Group in a research report on Wednesday, November 5th. Piper Sandler boosted their target price on shares of CAVA Group from $71.00 to $85.00 and gave the company an “overweight” rating in a research note on Wednesday. Finally, Argus reissued a “hold” rating on shares of CAVA Group in a research note on Friday. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $82.45.

Key Headlines Impacting CAVA Group

Here are the key news stories impacting CAVA Group this week:

• Positive Sentiment: Q4 results beat consensus modestly (EPS $0.04 vs $0.03; revenue $274.99M vs $268.04M) and revenue was up ~21% YoY; the print pushed the shares higher initially. Shares Gap Up Following Strong Earnings
• Positive Sentiment: Several brokers issued bullish notes or raised targets — TD Cowen raised its price target to $90, and analysts at Piper Sandler, RBC and Morgan Stanley signaled expectations for further upside, supporting short-term demand. TD Cowen Raises Price Target
• Neutral Sentiment: UBS and Citigroup lifted their price targets but UBS kept a neutral stance — UBS’s revised view still implies limited near-term upside relative to the current price. UBS Forecasts Strong Price Appreciation Citigroup Increases Price Target
• Neutral Sentiment: Argus reaffirmed a “hold” rating, keeping another floor of analyst caution visible to investors. Argus Hold Reaffirmed
• Negative Sentiment: Management’s 2026 same-store-sales guidance (3–5%) and plans to limit menu price increases temper growth and margin upside expectations — this guidance is a key reason some investors are pulling back. Q4 Earnings Call Summary
• Negative Sentiment: Valuation concerns: analysts and commentators note a high trailing price-to-sales (~7) and argue much growth is already priced in, limiting upside unless execution accelerates. Seeking Alpha: Valuation Concerns Invezz Valuation Piece

CAVA Group Company Profile

CAVA Group, Inc (NYSE: CAVA) is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.

Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe’s Kitchen.