CAVA Group (NYSE:CAVA) Downgraded by Wall Street Zen to "Sell"

Key Points

• Wall Street Zen recently downgraded CAVA Group (NYSE:CAVA) from a "hold" to a "sell" rating in a report issued on Saturday.
• Despite that downgrade, the analyst consensus remains a Moderate Buy (1 Strong Buy, 16 Buy, 11 Hold, 1 Sell) with an average target price of $88.70, indicating mixed broker sentiment.
• CAVA topped estimates with $0.04 EPS vs. $0.03 expected and $275M in revenue (up 20.9% y/y), but the stock trades around $95.56 and carries a high P/E of 176.96, suggesting rich valuation relative to earnings.

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

Other research analysts have also issued reports about the company. Truist Financial lifted their target price on CAVA Group from $80.00 to $85.00 and gave the stock a "buy" rating in a report on Wednesday, February 25th. Argus reiterated a "hold" rating on shares of CAVA Group in a report on Friday, February 27th. Piper Sandler lifted their target price on CAVA Group from $71.00 to $85.00 and gave the stock an "overweight" rating in a report on Wednesday, February 25th. Wolfe Research initiated coverage on CAVA Group in a report on Monday, March 9th. They set an "outperform" rating and a $93.00 target price on the stock. Finally, Barclays lifted their target price on CAVA Group from $52.00 to $70.00 and gave the stock an "equal weight" rating in a report on Wednesday, January 7th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $88.70.

CAVA Group Trading Up 2.6%

CAVA stock opened at $95.56 on Friday. The business's 50-day moving average price is $82.20 and its two-hundred day moving average price is $67.08. The firm has a market cap of $11.12 billion, a PE ratio of 176.96, a P/E/G ratio of 7.71 and a beta of 2.03. CAVA Group has a 1-year low of $43.41 and a 1-year high of $101.50.

CAVA Group (NYSE:CAVA - Get Free Report) last posted its earnings results on Tuesday, February 24th. The company reported $0.04 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.01. The firm had revenue of $274.99 million for the quarter, compared to analyst estimates of $268.04 million. CAVA Group had a return on equity of 8.43% and a net margin of 5.40%.The company's revenue for the quarter was up 20.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.05 earnings per share. On average, analysts forecast that CAVA Group will post 0.51 earnings per share for the current year.

Insider Transactions at CAVA Group

In related news, insider Kelly Costanza sold 1,707 shares of CAVA Group stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $62.14, for a total value of $106,072.98. Following the sale, the insider owned 119,139 shares of the company's stock, valued at approximately $7,403,297.46. The trade was a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Adam David Phillips sold 774 shares of CAVA Group stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $62.14, for a total value of $48,096.36. Following the completion of the sale, the chief accounting officer directly owned 10,435 shares in the company, valued at approximately $648,430.90. This represents a 6.91% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 11,460 shares of company stock worth $712,124. 6.80% of the stock is currently owned by company insiders.

Institutional Trading of CAVA Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Cornerstone Planning Group LLC increased its position in shares of CAVA Group by 378.7% in the third quarter. Cornerstone Planning Group LLC now owns 450 shares of the company's stock valued at $27,000 after acquiring an additional 356 shares during the last quarter. Los Angeles Capital Management LLC acquired a new stake in shares of CAVA Group in the fourth quarter valued at about $25,000. Harbor Investment Advisory LLC increased its position in shares of CAVA Group by 347.8% in the fourth quarter. Harbor Investment Advisory LLC now owns 515 shares of the company's stock valued at $30,000 after acquiring an additional 400 shares during the last quarter. Western Pacific Wealth Management LP acquired a new stake in shares of CAVA Group in the third quarter valued at about $33,000. Finally, CNB Bank increased its position in shares of CAVA Group by 275.8% in the third quarter. CNB Bank now owns 575 shares of the company's stock valued at $35,000 after acquiring an additional 422 shares during the last quarter. Institutional investors and hedge funds own 73.15% of the company's stock.

More CAVA Group News

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

• Positive Sentiment: Northcoast Research upgraded CAVA, signaling improved analyst conviction around the company’s growth trajectory and supporting near-term buying interest. Read More.
• Positive Sentiment: Morgan Stanley published a bullish forecast calling for strong price appreciation, which can attract momentum investors and institutional flows. Read More.
• Positive Sentiment: Roth Capital said the recent rally is likely to extend, reinforcing the narrative of continued upside and helping sustain buying pressure. Read More.
• Positive Sentiment: Zacks highlighted CAVA as one of several restaurant stocks with strong earnings surprise potential—citations point to demand, pricing power, digital growth and expansion as drivers despite margin pressures. Read More. | Read More.
• Positive Sentiment: CAVA announced a board refresh and launched a salmon menu item—corporate governance changes plus menu innovation support execution and top-line diversification. Read More.
• Neutral Sentiment: Coverage and commentary about CAVA’s valuation and its impact on broader NYSE buzz are keeping the name in market conversations; this drives attention but is mixed for valuation-sensitive investors. Read More.
• Neutral Sentiment: Morning quote pages and general market commentary (e.g., Fox Business quote) are circulating, providing liquidity and visibility but no new fundamental catalysts. Read More.
• Negative Sentiment: JPMorgan raised its price target to $90 and kept an "overweight" rating, but the new target sits below the current market price (implying potential downside from here), which may give some investors pause despite the upgrade. Read More. | Read More.

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.

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