CAVA Group (NYSE:CAVA) Shares Gap Up Following Strong Earnings

Key Points

• CAVA shares gapped up after the company reported stronger-than-expected quarterly results, opening well above the prior close as investors reacted positively to the earnings beat.
• The company posted EPS of $0.20 versus $0.17 expected and revenue of $438.27 million versus $418.46 million expected, with sales rising 32.1% year over year.
• CAVA also raised its full-year outlook, including plans for 75-77 net new openings and same-restaurant sales growth of 4.5%-6.5%, while several analysts lifted price targets after the report.

CAVA Group, Inc. (NYSE:CAVA - Get Free Report)'s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $78.12, but opened at $86.88. CAVA Group shares last traded at $81.5630, with a volume of 2,930,355 shares trading hands.

The company reported $0.20 earnings per share for the quarter, beating analysts' consensus estimates of $0.17 by $0.03. CAVA Group had a net margin of 5.40% and a return on equity of 8.43%. The business had revenue of $438.27 million for the quarter, compared to the consensus estimate of $418.46 million. During the same period last year, the firm posted $0.22 earnings per share. CAVA Group's quarterly revenue was up 32.1% on a year-over-year basis.

CAVA Group News Roundup

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

• Positive Sentiment: CAVA beat Q1 estimates with EPS of $0.20 versus $0.17 expected and revenue of $438.27 million versus $418.46 million expected, while sales climbed 32.1% year over year. CAVA Group Reports First Quarter 2026 Results
• Positive Sentiment: The company raised full-year expectations, including a plan for 75-77 net new openings and same-restaurant sales growth of 4.5%-6.5%, reinforcing confidence in continued expansion. CAVA outlines raised FY2026 plan
• Positive Sentiment: Wall Street turned more constructive after earnings, with Robert W. Baird lifting its target to $98, Stifel to $105, and TD Cowen reaffirming a buy rating with a $100 target. Analyst price target updates
• Positive Sentiment: CAVA also opened a new restaurant in Columbus, Ohio, showing continued unit growth and deeper Midwest expansion. CAVA Deepens Its Midwest Footprint with New Columbus Restaurant
• Neutral Sentiment: Coverage around CAVA’s AI initiatives and earnings-call transcript adds color to the growth story, but these items are unlikely to move the stock on their own. Cava wants AI to help power its Mediterranean bowl empire

Wall Street Analysts Forecast Growth

CAVA has been the subject of a number of research analyst reports. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $105.00 price objective on shares of CAVA Group in a report on Wednesday. Telsey Advisory Group raised their price target on CAVA Group from $92.00 to $95.00 and gave the company an "outperform" rating in a research report on Wednesday. JPMorgan Chase & Co. lifted their price target on CAVA Group from $80.00 to $90.00 and gave the stock an "overweight" rating in a research note on Friday, April 24th. Northcoast Research upgraded CAVA Group to a "strong sell" rating in a report on Tuesday, April 21st. Finally, BNP Paribas Exane assumed coverage on CAVA Group in a report on Monday, March 30th. They issued a "neutral" rating and a $91.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $91.59.

Insider Activity

In other news, insider Theodoros Xenohristos sold 9,044 shares of CAVA Group stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $79.75, for a total value of $721,259.00. Following the transaction, the insider owned 327,882 shares in the company, valued at approximately $26,148,589.50. The trade was a 2.68% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 6.70% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in CAVA. Los Angeles Capital Management LLC bought a new stake in CAVA Group in the 4th quarter worth $25,000. Cornerstone Planning Group LLC grew its stake 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 worth $27,000 after purchasing an additional 356 shares during the last quarter. Harbor Investment Advisory LLC increased its holdings in CAVA Group by 347.8% during the 4th quarter. Harbor Investment Advisory LLC now owns 515 shares of the company's stock valued at $30,000 after purchasing an additional 400 shares during the period. CNB Bank raised its position in CAVA Group by 275.8% during the 3rd quarter. CNB Bank now owns 575 shares of the company's stock valued at $35,000 after purchasing an additional 422 shares during the last quarter. Finally, TD Private Client Wealth LLC raised its position in CAVA Group by 118.2% during the 4th quarter. TD Private Client Wealth LLC now owns 600 shares of the company's stock valued at $35,000 after purchasing an additional 325 shares during the last quarter. 73.15% of the stock is owned by hedge funds and other institutional investors.

CAVA Group Trading Up 4.0%

The firm has a market cap of $9.46 billion, a PE ratio of 151.52, a PEG ratio of 5.62 and a beta of 1.90. The firm has a fifty day simple moving average of $84.98 and a two-hundred day simple moving average of $69.27.

About CAVA Group

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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