CAVA Group (NYSE:CAVA) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• CAVA Group beat quarterly expectations, reporting adjusted EPS of $0.19 versus the $0.18 consensus estimate and revenue of $368.44 million, ahead of expectations of $360.09 million.
• CAVA shares fell to $60.86 during Tuesday trading, while analysts maintained a generally positive outlook: the stock has a “Moderate Buy” consensus rating and an average price target of $92.46.
• Insiders sold shares primarily to cover tax withholding on vested equity awards, including CEO Brett Schulman’s sale of 33,174 shares. Institutional investors own approximately 73.15% of CAVA’s stock.

CAVA Group (NYSE:CAVA - Get Free Report) posted its earnings results on Tuesday. The company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.18 by $0.01, FiscalAI reports. CAVA Group had a net margin of 4.79% and a return on equity of 7.92%. The business had revenue of $368.44 million for the quarter, compared to the consensus estimate of $360.09 million.

CAVA Group Stock Performance

Shares of CAVA stock traded down $0.72 during trading hours on Tuesday, hitting $60.86. 4,483,692 shares of the company were exchanged, compared to its average volume of 3,352,730. The company has a 50 day simple moving average of $73.29 and a two-hundred day simple moving average of $76.84. The firm has a market cap of $7.09 billion, a P/E ratio of 117.04, a P/E/G ratio of 4.28 and a beta of 1.75. CAVA Group has a fifty-two week low of $43.41 and a fifty-two week high of $98.79.

Analysts Set New Price Targets

Several research firms have recently issued reports on CAVA. The Goldman Sachs Group raised their price target on shares of CAVA Group from $75.00 to $86.00 and gave the company a "neutral" rating in a research note on Monday, April 13th. UBS Group upgraded CAVA Group from a "neutral" rating to a "buy" rating and increased their price objective for the company from $85.00 to $90.00 in a report on Wednesday, June 10th. Sanford C. Bernstein restated an "outperform" rating and issued a $95.00 price objective on shares of CAVA Group in a report on Wednesday, May 20th. Piper Sandler lifted their target price on CAVA Group from $85.00 to $92.00 and gave the stock an "overweight" rating in a report on Wednesday, May 20th. Finally, DA Davidson lifted their target price on CAVA Group from $80.00 to $84.00 and gave the stock a "neutral" rating in a report on Thursday, May 21st. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $92.46.

Insider Activity at CAVA Group

In other CAVA Group news, CEO Brett Schulman sold 33,174 shares of CAVA Group stock in a transaction on Monday, June 15th. The shares were sold at an average price of $89.43, for a total value of $2,966,750.82. Following the completion of the sale, the chief executive officer directly owned 798,669 shares of the company's stock, valued at approximately $71,424,968.67. The trade was a 3.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Kelly Costanza sold 12,490 shares of the company's stock in a transaction dated 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 transaction, the insider owned 98,490 shares in the company, valued at $8,864,100. This represents a 11.25% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 82,703 shares of company stock worth $7,249,579 over the last ninety days. 6.70% of the stock is owned by corporate insiders.

Institutional Trading of CAVA Group

Several large investors have recently made changes to their positions in CAVA. Los Angeles Capital Management LLC acquired a new position in CAVA Group during the 4th quarter worth approximately $25,000. Advisors Asset Management Inc. increased its holdings in shares of CAVA Group by 53.5% during the fourth quarter. Advisors Asset Management Inc. now owns 694 shares of the company's stock valued at $41,000 after acquiring an additional 242 shares in the last quarter. National Bank of Canada FI increased its holdings in shares of CAVA Group by 195.1% during the third quarter. National Bank of Canada FI now owns 717 shares of the company's stock valued at $43,000 after acquiring an additional 474 shares in the last quarter. Advisory Services Network LLC acquired a new position in shares of CAVA Group during the third quarter worth approximately $51,000. Finally, Horizon Investments LLC raised its position in shares of CAVA Group by 47.9% during the third quarter. Horizon Investments LLC now owns 1,040 shares of the company's stock worth $63,000 after purchasing an additional 337 shares during the period. 73.15% of the stock is currently owned by institutional investors and hedge funds.

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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