CAVA Group (NYSE:CAVA) Shares Gap Up on Earnings Beat

CAVA Group, Inc. (NYSE:CAVA) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $60.81, but opened at $69.46. CAVA Group shares last traded at $68.3790, with a volume of 2,519,341 shares trading hands.

The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.01. CAVA Group had a net margin of 4.79% and a return on equity of 7.92%. The firm had revenue of $368.44 million during the quarter, compared to the consensus estimate of $360.09 million. During the same quarter in the previous year, the firm posted $0.16 EPS. The business’s revenue for the quarter was up 31.3% compared to the same quarter last year.

More CAVA Group News

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

• Positive Sentiment: Q2 results exceeded expectations. CAVA reported adjusted earnings of $0.19 per share versus the $0.18 consensus estimate, while revenue climbed 31.3% year over year to $368.44 million, above expectations of $360.09 million. The company also posted $23 million in profit. CAVA Group Reports Second Quarter 2026 Results
• Positive Sentiment: Restaurant demand and traffic were solid. Same-restaurant sales increased 9%, supported by robust traffic growth and continued demand for CAVA’s Mediterranean menu. Comparable-sales growth also surpassed analyst estimates. Cava Same-Store Sales Gains Boost Earnings in Second Quarter
• Positive Sentiment: RBC raised its price target. Royal Bank of Canada increased its target from $90 to $95 and maintained an “outperform” rating, implying substantial potential upside from the referenced $60.86 price. RBC Raises CAVA Price Target
• Neutral Sentiment: Full-year guidance was reiterated. CAVA continues to forecast fiscal 2026 same-restaurant sales growth of 4.5% to 6.5%, suggesting management remains confident despite near-term operating uncertainty. CAVA Reiterates Fiscal 2026 Outlook
• Negative Sentiment: Food-safety concerns remain a risk. Management cited food-safety-related volatility, which could pressure traffic and comparable sales. In addition, CAVA trades at a high valuation, with a reported P/E above 117, leaving the stock sensitive to any slowdown in growth or weaker consumer spending.

Analyst Ratings Changes

CAVA has been the topic of a number of analyst reports. Wolfe Research reissued an “outperform” rating and set a $82.00 price target on shares of CAVA Group in a research report on Wednesday. DA Davidson upped their target price on CAVA Group from $80.00 to $84.00 and gave the company a “neutral” rating in a research report on Thursday, May 21st. Royal Bank Of Canada increased their target price on CAVA Group from $90.00 to $95.00 and gave the stock an “outperform” rating in a report on Wednesday. Piper Sandler raised their price target on CAVA Group from $85.00 to $92.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 20th. Finally, Argus set a $92.00 price target on CAVA Group in a research note on Friday, May 22nd. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $90.81.

Insider Transactions at CAVA Group

In other news, insider Kelly Costanza sold 12,490 shares of the company’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $90.00, for a total transaction of $1,124,100.00. Following the completion of the transaction, the insider directly owned 98,490 shares in the company, valued at approximately $8,864,100. This represents a 11.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Adam David Phillips sold 5,181 shares of the firm’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $77.14, for a total value of $399,662.34. Following the sale, the chief accounting officer directly owned 9,505 shares in the company, valued at approximately $733,215.70. This trade represents a 35.28% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 82,703 shares of company stock valued at $7,249,579. 6.70% of the stock is owned by company insiders.

Institutional Trading of CAVA Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. Modern Wealth Management LLC lifted its holdings in shares of CAVA Group by 4.2% during the first quarter. Modern Wealth Management LLC now owns 3,907 shares of the company’s stock worth $313,000 after purchasing an additional 158 shares during the period. Bridgewater Associates LP lifted its holdings in CAVA Group by 2.4% during the 4th quarter. Bridgewater Associates LP now owns 6,827 shares of the company’s stock worth $401,000 after buying an additional 163 shares during the period. Western Pacific Wealth Management LP grew its position in shares of CAVA Group by 32.5% in the 4th quarter. Western Pacific Wealth Management LP now owns 729 shares of the company’s stock valued at $43,000 after buying an additional 179 shares during the last quarter. Allworth Financial LP raised its position in shares of CAVA Group by 57.4% during the fourth quarter. Allworth Financial LP now owns 650 shares of the company’s stock worth $38,000 after acquiring an additional 237 shares during the last quarter. Finally, Clearstead Advisors LLC lifted its stake in shares of CAVA Group by 18.2% in the fourth quarter. Clearstead Advisors LLC now owns 1,566 shares of the company’s stock worth $92,000 after acquiring an additional 241 shares during the period. 73.15% of the stock is currently owned by institutional investors.

CAVA Group Price Performance

The firm has a market capitalization of $8.00 billion, a P/E ratio of 132.14, a PEG ratio of 4.23 and a beta of 1.74. The company has a fifty day moving average of $73.06 and a 200 day moving average of $76.79.

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.