CAVA Group (NYSE:CAVA) Announces Quarterly Earnings Results

CAVA Group (NYSE:CAVA) announced its earnings results on Tuesday. The company reported $0.04 EPS for the quarter, topping the consensus estimate of $0.03 by $0.01, FiscalAI reports. CAVA Group had a return on equity of 8.51% 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 quarter in the prior year, the business earned $0.05 earnings per share. The business’s revenue for the quarter was up 20.9% on a year-over-year basis.

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 3.6%

Shares of CAVA traded down $3.06 on Thursday, reaching $82.61. 1,952,136 shares of the company’s stock were exchanged, compared to its average volume of 3,873,220. The business has a 50 day moving average price of $65.30 and a two-hundred day moving average price of $61.69. CAVA Group has a 12 month low of $43.41 and a 12 month high of $101.50. The stock has a market capitalization of $9.58 billion, a P/E ratio of 152.19, a price-to-earnings-growth ratio of 4.98 and a beta of 2.41.

Trending Headlines about CAVA Group

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

• Positive Sentiment: Q4 beat and milestone revenue: CAVA reported Q4 EPS of $0.04 (vs. $0.03 consensus) and fiscal‑year revenue topped $1 billion for the first time — the core trigger for the rally. Business Wire: Q4 Results
• Positive Sentiment: Bright 2026 outlook and unit growth: Management guided to 74–76 new restaurant openings for 2026 and 3–5% same‑store sales growth, signaling continued scale and comp recovery. Seeking Alpha: 2026 Guidance
• Positive Sentiment: Multiple analyst upgrades/price‑target raises — Several firms raised targets or ratings (TD Cowen, RBC, Piper Sandler, Sanford Bernstein, Telsey, Morgan Stanley and others), providing buy‑side validation and momentum. Benzinga: Analyst Moves
• Positive Sentiment: Investors rewarded execution on growth and pricing: Company said diners are improving and it achieved revenue gains from new openings and selective price increases — a sign management is balancing growth and value. WSJ: Q4 Sales Rise
• Neutral Sentiment: Analyst targets are mixed in implications — many firms raised targets, but several post‑raise targets (UBS, Citi) still imply downside versus the current market price, reflecting differing views on valuation and near‑term comps. Benzinga: Analyst Notes
• Negative Sentiment: Valuation and “growth priced in” concerns: Analysts/commentators point to a high trailing price‑to‑sales ratio (around 7) and argue much of CAVA’s expansion is already priced into the stock — a headwind if comps slow. Seeking Alpha: New Restaurants Priced In
• Negative Sentiment: Fast‑casual growth risk: Coverage notes that the market has punished fast‑casual names with modest same‑store growth; CAVA’s 3–5% comp guidance and modest EPS levels mean execution risk remains. Barron’s: Sector Caution

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Sanford C. Bernstein upped their price target on shares of CAVA Group from $75.00 to $84.00 and gave the stock an “outperform” rating in a research report on Wednesday. Mizuho boosted their target price on shares of CAVA Group from $52.00 to $64.00 and gave the stock a “neutral” rating in a research note on Friday, January 9th. Royal Bank Of Canada upped their target price on shares of CAVA Group from $80.00 to $90.00 and gave the stock an “outperform” rating in a research report on Wednesday. Stifel Nicolaus set a $75.00 price target on shares of CAVA Group in a report on Wednesday, November 5th. Finally, Argus dropped their price objective on shares of CAVA Group from $76.00 to $60.00 and set a “buy” rating for the company in a research report on Thursday, November 13th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $83.22.

Insider Activity

In other news, CEO Brett Schulman sold 4,542 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 $282,239.88. Following the transaction, the chief executive officer directly owned 802,783 shares in the company, valued at $49,884,935.62. This trade represents a 0.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Adam David Phillips sold 774 shares of CAVA Group stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $62.14, for a total value of $48,096.36. Following the sale, the chief accounting officer directly owned 10,435 shares of the company’s stock, valued at approximately $648,430.90. This trade represents a 6.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 39,055 shares of company stock worth $2,572,303. Corporate insiders own 6.80% of the company’s stock.

Hedge Funds Weigh In On CAVA Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CAVA. Pacer Advisors Inc. grew its position in shares of CAVA Group by 65.6% during the 4th quarter. Pacer Advisors Inc. now owns 21,742 shares of the company’s stock worth $1,276,000 after buying an additional 8,612 shares during the period. Invesco Ltd. boosted its stake in CAVA Group by 8.2% during the 4th quarter. Invesco Ltd. now owns 145,565 shares of the company’s stock worth $8,543,000 after acquiring an additional 11,013 shares during the last quarter. Alberta Investment Management Corp acquired a new position in CAVA Group during the fourth quarter valued at approximately $1,473,000. Mercer Global Advisors Inc. ADV acquired a new position in CAVA Group during the fourth quarter valued at approximately $323,000. Finally, State of Tennessee Department of Treasury increased its stake in CAVA Group by 4.8% in the fourth quarter. State of Tennessee Department of Treasury now owns 34,021 shares of the company’s stock valued at $2,062,000 after purchasing an additional 1,543 shares in the last quarter. Institutional investors own 73.15% of the company’s stock.

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.