Zacks Investment Research·Jun 26, 2026
Why Cava Group (CAVA) is a Top Momentum Stock for the Long-TermWondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
CAVA Group, Inc.(CAVA)Earnings, Financials & Key Ratios
CAVA•NYSE
$69.74
129.1× P/E·Price updated Jul 7, 2026
AboutCAVA 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.Show more
- Revenue$1.18B+22.4%
- EBITDA$153M+47.9%
- Net Income$64M-51.1%
- EPS (Diluted)0.54-50.9%
- Gross Margin18.38%-26.8%
- EBITDA Margin12.97%+20.8%
- Operating Margin6.73%+50.3%
- Net Margin5.4%-60.0%
- ROE8.64%-58.0%
CAVA Price & Volume
CAVA Group, Inc. (CAVA) stock price & volume — 10-year historical chart
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Aggressive Expansion Drives Revenue Growth Amid Margin
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Accelerating
Profitability:Moderate
Financial:Healthy
Cash Flow:Robust
Primary Risk:High valuation multiple sensitivity
Key Thesis Takeaways
- CAVA continues to demonstrate robust top-line momentum with 32.1% year-over-year revenue growth in 2026Q1, driven by an aggressive greenfield store development strategy.
- However, investors should monitor the ongoing gross margin compression, which fell to 19.6% in 2026Q1, as the company navigates the capital-intensive nature of its vertically integrated model.
- While the balance sheet remains healthy with a 2.65 current ratio, the reliance on stock-based compensation of $6.7M and volatile free cash flow margins suggest that long-term earnings quality requires further scrutiny.
Verdict Logic
while the company exhibits strong top-line growth, the current P/E ratio of 154.44 and the volatility in free cash flow margins warrant a cautious approach until operational leverage stabilizes.
CAVA Growth Metrics
CAVA Group, Inc. (CAVA) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years-
3 Years27.88%
TTM24.08%
Profit CAGR
10 Years-
5 Years-
3 Years-
TTM-56.63%
EPS CAGR
10 Years-
5 Years-
3 Years-
TTM-56.53%
Return on Capital
10 Years-3.89%
5 Years-3.89%
3 Years4.1%
Last Year7.1%
CAVA Recent Earnings
CAVA Group, Inc. (CAVA) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 10/12 qtrs (83%)●Beat Revenue 10/12 qtrs (83%)
Q2 2026Latest
May 19, 2026Metric
Actual
Est
EPS
$0.20+17.6%
$0.17
Rev
$438M+21.6%
$360M
Q1 2026
Feb 24, 2026Metric
Actual
Est
EPS
$0.04+33.3%
$0.03
Rev
$275M+2.5%
$268M
Q4 2025
Nov 4, 2025Metric
Actual
Est
EPS
$0.12-7.7%
$0.13
Rev
$292M+9.1%
$268M
Q3 2025
Aug 12, 2025Metric
Actual
Est
EPS
$0.16+23.1%
$0.13
Rev
$281M-4.5%
$294M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | May 19, 2026 | $0.20vs $0.17+17.6% | $438Mvs $360M+21.6% |
| Q1 2026 | Feb 24, 2026 | $0.04vs $0.03+33.3% | $275Mvs $268M+2.5% |
| Q4 2025 | Nov 4, 2025 | $0.12vs $0.13-7.7% | $292Mvs $268M+9.1% |
| Q3 2025 | Aug 12, 2025 | $0.16vs $0.13+23.1% | $281Mvs $294M-4.5% |
Based on last 12 quarters of dataView full earnings history →
Latest CAVA News
Recent stock market news and headlines for CAVA Group, Inc. (CAVA)
The Motley Fool·Jun 26, 2026
CAVA vs. Krispy Kreme: Which Consumer Stock Is a Better Buy in 2026?CAVA Group continues to see rapid growth and positive net income as it scales its Mediterranean fast-casual concept across the United States. Krispy Kreme is executing a strategic pivot toward a capital-light model by expanding third-party retail access points and refranchising shops.
Zacks Investment Research·Jun 25, 2026
Cava Group (CAVA) Rises As Market Takes a Dip: Key FactsIn the latest trading session, Cava Group (CAVA) closed at $83.3, marking a +1.29% move from the previous day.
Zacks Investment Research·Jun 25, 2026
CAVA Stock Jumps 37% in 6 Months: Should You Buy, Sell or Hold?CAVA stock jumps 37% in six months on strong traffic, expansion and raised guidance, but margin pressures and valuation warrant caution.
Schaeffers Research·Jun 24, 2026
CAVA Pullback Puts Historically Bullish Signal in FocusCAVA Group Inc (NYSE:CAVA) has pulled back since its early-June rally , though the shares are still up 33.3% year to date.
Peers Comparison
Key metrics vs top competitors for CAVA Group, Inc. (CAVA)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $69.74 | $8.12B | 129.15 | 22.41% | 5.4% | 8.64% | — | |
| $34.35 | $44.74B | 30.13 | 5.41% | 11.96% | 48.45% | — | |
| $7.74 | $919.73M | -6.79 | 0.39% | 2.49% | 4.04% | — | |
| $54.92 | $2.21B | 50.39 | 15.38% | 2.76% | 7.62% | — | |
| $66.28 | $8.41B | 105.21 | 27.88% | 4.61% | 9.16% | — | |
| $187.03 | $12.29B | 30.66 | 9.39% | 6.85% | 27.87% | — |
Compare CAVA vs Peers
CAVA Group, Inc. (CAVA) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
CAVA SEC Filings & Documents
CAVA Group, Inc. (CAVA) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 19, 2026·SEC
Material company update
Apr 21, 2026·SEC
Material company update
Mar 25, 2026·SEC
10-K Annual Reports
210-Q Quarterly Reports
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CAVA Frequently Asked Questions
CAVA Group, Inc. (CAVA) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is CAVA Group, Inc.'s revenue?
CAVA Group, Inc. (CAVA) reported $1.29B in revenue for fiscal year 2025. This represents a 157% increase from $500.1M in 2021.
How fast is CAVA Group, Inc. growing?
CAVA Group, Inc. (CAVA) grew revenue by 22.4% over the past year. This is strong growth.
Is CAVA profitable?
Yes, CAVA Group, Inc. (CAVA) is profitable, generating $61.6M in net income for fiscal year 2025 (5.4% net margin).
Dividend & Returns
What is CAVA's return on equity?
CAVA Group, Inc. (CAVA) has a return on equity (ROE) of 8.6%. This is below average, suggesting room for improvement.
What is CAVA Group, Inc.'s free cash flow?
CAVA Group, Inc. (CAVA) generated $38.9M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.