CAVA Group (NYSE:CAVA) Stock Rating Upgraded by Northcoast Research

Key Points

• Northcoast Research upgraded CAVA Group from “sell” to “neutral,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $90.
• CAVA reported quarterly EPS of $0.19 versus the $0.18 estimate and revenue of $368.4 million, up 31.3% year over year and above expectations.
• The stock opened at $69.92, with profitability concerns and elevated valuation still notable risks; insiders have also sold more than $7.2 million worth of shares over the past three months.

CAVA Group (NYSE:CAVA - Get Free Report) was upgraded by analysts at Northcoast Research from a "sell" rating to a "neutral" rating in a report issued on Thursday,Finviz reports.

Several other research analysts also recently commented on the company. DA Davidson lifted their price objective on CAVA Group from $80.00 to $84.00 and gave the stock a "neutral" rating in a report on Thursday, May 21st. Argus set a $92.00 target price on CAVA Group in a research note on Friday, May 22nd. UBS Group raised CAVA Group from a "neutral" rating to a "buy" rating and upped their price target for the company from $85.00 to $90.00 in a research report on Wednesday, June 10th. Barclays lifted their price objective on CAVA Group from $70.00 to $74.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 20th. Finally, Telsey Advisory Group lifted their price target on shares of CAVA Group from $92.00 to $95.00 and gave the company an "outperform" rating in a report on Wednesday, May 20th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $90.00.

CAVA Group Stock Performance

Shares of CAVA stock opened at $69.92 on Thursday. The business's fifty day moving average is $73.03 and its 200 day moving average is $76.82. CAVA Group has a 52-week low of $43.41 and a 52-week high of $98.79. The company has a market capitalization of $8.14 billion, a PE ratio of 127.13, a price-to-earnings-growth ratio of 4.17 and a beta of 1.74.

CAVA Group (NYSE:CAVA - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The company reported $0.19 EPS for the quarter, topping analysts' consensus estimates of $0.18 by $0.01. CAVA Group had a net margin of 4.82% and a return on equity of 8.43%. The business had revenue of $368.44 million during the quarter, compared to analysts' expectations of $360.09 million. During the same quarter in the previous year, the company earned $0.16 EPS. The business's quarterly revenue was up 31.3% compared to the same quarter last year. On average, sell-side analysts forecast that CAVA Group will post 0.54 EPS for the current fiscal year.

Insider Activity

In related news, CFO Tricia K. Tolivar sold 4,969 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $89.43, for a total transaction of $444,377.67. Following the sale, the chief financial officer directly owned 234,931 shares of the company's stock, valued at approximately $21,009,879.33. This represents a 2.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Brett Schulman sold 33,174 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $89.43, for a total transaction of $2,966,750.82. Following the sale, the chief executive officer owned 798,669 shares in the company, valued at approximately $71,424,968.67. The trade was a 3.99% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 82,703 shares of company stock valued at $7,249,579. 6.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On CAVA Group

Several hedge funds and other institutional investors have recently made changes to their positions in CAVA. BlackRock Inc. purchased a new position in shares of CAVA Group during the 2nd quarter worth $757,013,000. Capital Research Global Investors grew its stake in shares of CAVA Group by 27.2% during the 4th quarter. Capital Research Global Investors now owns 8,440,040 shares of the company's stock valued at $495,344,000 after acquiring an additional 1,805,174 shares during the period. Capital International Investors raised its stake in CAVA Group by 15.5% during the 4th quarter. Capital International Investors now owns 4,885,317 shares of the company's stock worth $286,718,000 after acquiring an additional 656,581 shares during the period. Morgan Stanley boosted its position in shares of CAVA Group by 33.7% in the fourth quarter. Morgan Stanley now owns 3,318,894 shares of the company's stock worth $194,786,000 after purchasing an additional 835,628 shares during the period. Finally, State Street Corp raised its position in shares of CAVA Group by 1.3% during the 4th quarter. State Street Corp now owns 2,920,442 shares of the company's stock valued at $171,401,000 after purchasing an additional 36,508 shares during the period. Hedge funds and other 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: Quarterly beat and strong sales growth: CAVA reported adjusted earnings of $0.19 per share versus the $0.18 consensus estimate, while revenue reached approximately $368.4 million, above expectations near $360.1 million. Revenue increased 31.3% year over year, and profit rose from $0.16 per share in the prior-year quarter. Cava Group Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Healthy underlying demand: Same-restaurant sales rose about 9% to 9.7%, with traffic growth a key driver. Robust guest visits, continued unit expansion and strong performance from newer restaurants suggested that consumers remain willing to spend at CAVA despite broader economic concerns. What Drove CAVA Same-Store Sales Up 9.7%
• Positive Sentiment: Food-safety fears appear manageable: Analysts characterized the business as resilient and said CAVA was recovering faster than expected from recent cyclospora-related concerns. The company also reiterated its fiscal 2026 same-restaurant sales outlook of 4.5% to 6.5%, supporting investor confidence in its longer-term growth trajectory. CAVA Reiterates Fiscal 2026 Outlook
• Positive Sentiment: Analyst support: RBC raised its price target to $95 and maintained an “outperform” rating. Other analysts remained bullish following the earnings release, reinforcing the view that traffic and unit growth can offset near-term operating pressures. What Analysts Are Saying About CAVA After Earnings
• Neutral Sentiment: Margins remain a concern: Higher food, labor and delivery costs pressured profitability, meaning CAVA’s elevated growth valuation depends on continued sales momentum and successful new-store execution. KeyCorp and Roth Capital kept positive ratings but lowered their price targets to $95 from $110 and $106, respectively.
• Negative Sentiment: Industry food-safety overhang: A cyclospora outbreak caused a sharp decline in lettuce prices and has made some diners more cautious about leafy greens. Although CAVA’s results suggest limited damage so far, renewed concerns could weigh on restaurant traffic.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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