CAVA Group (NYSE:CAVA) Stock Moved Down to "Sell" by Wall Street Zen

Key Points

• Wall Street Zen downgraded CAVA from “hold” to “sell.” Despite the move, analysts overall maintained a “Moderate Buy” consensus rating, with an average price target of $83.88.
• CAVA’s latest quarter missed estimates, reporting EPS of $0.11 versus $0.12 expected and revenue of $356.4 million versus $358.4 million expected. Revenue still grew 21% year over year.
• The company raised its sales outlook after moving past a cyclospora-related headwind and reported 24 net new restaurant openings in the third quarter.

CAVA Group (NYSE:CAVA - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other analysts also recently weighed in on the stock. KeyCorp lowered their price target on shares of CAVA Group from $80.00 to $75.00 and set an "overweight" rating for the company in a research note on Thursday. TD Cowen cut their price target on shares of CAVA Group from $78.00 to $76.00 and set a "buy" rating on the stock in a report on Thursday. Northcoast Research raised shares of CAVA Group from a "sell" rating to a "neutral" rating in a report on Thursday, August 13th. Citigroup reduced their price target on CAVA Group from $66.00 to $65.00 and set a "neutral" rating on the stock in a report on Friday. Finally, Melius Research upgraded shares of CAVA Group from a "hold" rating to a "buy" rating and set a $95.00 target price on the stock in a report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $83.88.

CAVA Group Stock Down 1.8%

Shares of CAVA Group stock opened at $58.92 on Friday. The business has a 50-day moving average price of $55.73 and a 200-day moving average price of $71.09. The firm has a market cap of $6.88 billion, a price-to-earnings ratio of 112.82, a PEG ratio of 4.94 and a beta of 1.75. CAVA Group has a twelve month low of $43.41 and a twelve month high of $98.79.

CAVA Group (NYSE:CAVA - Get Free Report) last announced its earnings results on Wednesday, November 4th. The company reported $0.11 earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.01). The firm had revenue of $356.44 million during the quarter, compared to analyst estimates of $358.40 million. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. The company's revenue for the quarter was up 21.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.12 EPS. On average, equities analysts expect that CAVA Group will post 0.55 EPS for the current fiscal year.

CAVA Group announced that its Board of Directors has authorized a share repurchase plan on Friday, September 18th that authorizes the company to buy back $100 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 1.7% of its shares through open market purchases. Share buyback plans are usually a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, insider Douglas Thompson acquired 6,500 shares of CAVA Group stock in a transaction that occurred on Monday, August 31st. The stock was acquired at an average price of $66.52 per share, for a total transaction of $432,380.00. Following the transaction, the insider directly owned 19,371 shares of the company's stock, valued at $1,288,558.92. This trade represents a 50.50% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 6.70% of the company's stock.

Institutional Investors Weigh In On CAVA Group

Several hedge funds have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in CAVA Group in the 2nd quarter worth approximately $757,013,000. Wellington Management Group LLP boosted its stake in CAVA Group by 76.9% during the second quarter. Wellington Management Group LLP now owns 1,605,508 shares of the company's stock worth $126,000,000 after buying an additional 697,699 shares in the last quarter. Primecap Management Co. CA acquired a new position in shares of CAVA Group in the 2nd quarter valued at approximately $92,956,000. William Blair Investment Management LLC acquired a new stake in shares of CAVA Group during the 2nd quarter worth $89,861,000. Finally, Prime Capital Management Co Ltd acquired a new stake in shares of CAVA Group in the 2nd quarter worth about $80,962,000. Institutional investors own 73.15% of the company's stock.

CAVA Group News Summary

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

• Positive Sentiment: CAVA raised its sales outlook after moving past the cyclospora-related headwind. It also reported 24 net new restaurant openings in the third quarter and projected 76–78 net openings and $184 million–$189 million in adjusted EBITDA for 2026. Sales guidance update 2026 outlook
• Neutral Sentiment: Several analysts cut price targets after the results, though some retained bullish ratings. Citigroup lowered its target to $65 and BNP Paribas Exane to $62, both with neutral ratings; Bernstein, KeyCorp and TD Cowen also reduced targets but maintained positive ratings. Citigroup rating BNP Paribas Exane rating
• Negative Sentiment: Third-quarter EPS of $0.11 missed the $0.12 consensus, and revenue of $356.4 million came in below the $358.4 million estimate, despite growing 21% year over year. Reports also flagged margin and traffic slippage; shares slid 11% following the results. Earnings results Margin and traffic concerns Share decline after results

About CAVA Group

CAVA Group, Inc operates CAVA, a fast-casual restaurant brand serving Mediterranean-inspired food in the United States. Its menu includes customizable bowls and pitas, salads, dips, spreads, grilled proteins, and other Mediterranean dishes, with options designed to accommodate a range of dietary preferences.

The company's restaurants generally use an assembly-line format that allows customers to build meals from a selection of ingredients and sauces. CAVA also offers its branded dips, spreads, and other products through select grocery and retail channels, extending the brand beyond its restaurant locations.

CAVA was founded in 2010 by Dimitri Moshovitis, Ike Grigoropoulos, and Ted Xenohristos.

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