William Blair Raises Earnings Estimates for CAVA Group

Key Points

• William Blair analysts have raised their FY2026 earnings forecast for CAVA Group from $0.63 to $0.64 per share, surpassing the current consensus estimate of $0.50 per share.
• In a recent earnings report, CAVA Group achieved $0.16 earnings per share, exceeding analysts' expectations of $0.13, while experiencing a 20.2% year-over-year revenue growth, totaling $280.62 million.
• Multiple brokerages have updated their price targets for CAVA, with a consensus rating of "Moderate Buy" and an average target price of $100.44, despite some analysts reducing their targets significantly.

CAVA Group, Inc. (NYSE:CAVA - Free Report) - Stock analysts at William Blair lifted their FY2026 earnings per share (EPS) estimates for CAVA Group in a report issued on Wednesday, August 13th. William Blair analyst S. Zackfia now forecasts that the company will post earnings of $0.64 per share for the year, up from their prior estimate of $0.63. The consensus estimate for CAVA Group's current full-year earnings is $0.50 per share.

Other equities research analysts have also recently issued research reports about the company. KeyCorp dropped their target price on CAVA Group from $100.00 to $85.00 and set an "overweight" rating on the stock in a report on Wednesday, August 13th. JPMorgan Chase & Co. dropped their target price on CAVA Group from $115.00 to $95.00 and set an "overweight" rating on the stock in a report on Wednesday, June 25th. Sanford C. Bernstein set a $74.00 target price on CAVA Group in a report on Wednesday, August 13th. TD Cowen dropped their target price on CAVA Group from $120.00 to $90.00 and set a "buy" rating on the stock in a report on Wednesday, August 13th. Finally, Stifel Nicolaus dropped their target price on CAVA Group from $175.00 to $125.00 and set a "buy" rating on the stock in a report on Wednesday, June 18th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $100.44.

CAVA Group Stock Performance

Shares of CAVA traded up $0.1440 during mid-day trading on Friday, reaching $68.5940. 3,570,079 shares of the company's stock traded hands, compared to its average volume of 3,856,428. CAVA Group has a 12 month low of $65.70 and a 12 month high of $172.43. The stock has a market capitalization of $7.95 billion, a P/E ratio of 57.64, a price-to-earnings-growth ratio of 3.49 and a beta of 2.65. The business's 50-day moving average price is $82.32 and its 200-day moving average price is $89.99.

CAVA Group (NYSE:CAVA - Get Free Report) last released its quarterly earnings results on Tuesday, August 12th. The company reported $0.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. The company had revenue of $280.62 million for the quarter, compared to analysts' expectations of $285.65 million. CAVA Group had a return on equity of 9.83% and a net margin of 12.98%.The business's revenue for the quarter was up 20.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.17 earnings per share.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of CAVA. Jennison Associates LLC grew its position in CAVA Group by 246.1% during the 1st quarter. Jennison Associates LLC now owns 8,519,459 shares of the company's stock worth $736,166,000 after purchasing an additional 6,057,727 shares in the last quarter. Price T Rowe Associates Inc. MD grew its position in CAVA Group by 114.4% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 2,394,561 shares of the company's stock worth $206,915,000 after purchasing an additional 1,277,912 shares in the last quarter. Vanguard Group Inc. grew its position in CAVA Group by 13.2% during the 1st quarter. Vanguard Group Inc. now owns 9,065,782 shares of the company's stock worth $783,374,000 after purchasing an additional 1,054,180 shares in the last quarter. Nuveen LLC purchased a new position in CAVA Group during the 1st quarter worth approximately $72,800,000. Finally, Alliancebernstein L.P. grew its position in CAVA Group by 2,072.1% during the 1st quarter. Alliancebernstein L.P. now owns 852,691 shares of the company's stock worth $73,681,000 after purchasing an additional 813,434 shares in the last quarter. Institutional investors own 73.15% of the company's stock.

Insider Buying and Selling

In other CAVA Group news, insider Theodoros Xenohristos sold 3,062 shares of the company's stock in a transaction on Monday, June 16th. The stock was sold at an average price of $75.16, for a total value of $230,139.92. Following the transaction, the insider owned 350,209 shares of the company's stock, valued at approximately $26,321,708.44. This represents a 0.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Brett Schulman sold 31,856 shares of the company's stock in a transaction on Monday, June 16th. The shares were sold at an average price of $75.16, for a total value of $2,394,296.96. Following the completion of the transaction, the chief executive officer directly owned 792,318 shares in the company, valued at $59,550,620.88. This represents a 3.87% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 48,360 shares of company stock valued at $3,634,738 in the last three months. Insiders own 12.10% of the company's stock.

About CAVA Group

CAVA Group, Inc owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc was founded in 2006 and is headquartered in Washington, the District of Columbia.