William Blair Has Bearish Outlook for CAVA Group Q3 Earnings

Key Points

• William Blair has revised CAVA Group's Q3 2025 earnings estimate down from $0.18 to $0.15 per share, with a full-year earnings expectation of $0.50 per share.
• Analysts have decreased their target prices for CAVA Group, with Citigroup setting a new target of $88.00 and TD Cowen dropping theirs to $90.00.
• CAVA Group's stock has seen a 16.8% decline, reflecting concerns from analysts as well as insider sales totaling over $4.5 million in the past 90 days.

CAVA Group, Inc. (NYSE:CAVA - Free Report) - Stock analysts at William Blair reduced their Q3 2025 earnings per share (EPS) estimates for shares of CAVA Group in a report issued on Wednesday, August 13th. William Blair analyst S. Zackfia now forecasts that the company will earn $0.15 per share for the quarter, down from their prior forecast of $0.18. The consensus estimate for CAVA Group's current full-year earnings is $0.50 per share. William Blair also issued estimates for CAVA Group's Q4 2025 earnings at $0.03 EPS, FY2025 earnings at $0.55 EPS and FY2027 earnings at $0.86 EPS.

CAVA Group (NYSE:CAVA - Get Free Report) last announced its earnings results on Tuesday, August 12th. The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.13 by $0.03. CAVA Group had a return on equity of 9.83% and a net margin of 12.98%. The company had revenue of $280.62 million for the quarter, compared to analyst estimates of $285.65 million. During the same quarter in the prior year, the company earned $0.17 EPS. The firm's revenue for the quarter was up 20.2% compared to the same quarter last year.

A number of other research firms have also weighed in on CAVA. Citigroup dropped their target price on CAVA Group from $102.00 to $88.00 and set a "neutral" rating on the stock in a report on Wednesday. UBS Group decreased their target price on CAVA Group from $96.00 to $75.00 and set a "neutral" rating for the company in a research report on Wednesday. Piper Sandler reduced their price target on CAVA Group from $122.00 to $100.00 and set an "overweight" rating for the company in a research report on Wednesday. TD Cowen reduced their target price on CAVA Group from $120.00 to $90.00 and set a "buy" rating for the company in a research report on Wednesday. Finally, Morgan Stanley reduced their target price on CAVA Group from $107.00 to $97.00 and set an "equal weight" rating for the company in a research report on Wednesday. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and twelve have given a buy rating to the company's stock. Based on data from MarketBeat.com, CAVA Group presently has an average rating of "Moderate Buy" and a consensus price target of $100.44.

CAVA Group Stock Up 1.2%

CAVA traded up $0.83 during trading on Thursday, hitting $69.76. 4,820,851 shares of the company's stock were exchanged, compared to its average volume of 6,001,963. The business's 50 day moving average is $82.85 and its two-hundred day moving average is $91.08. CAVA Group has a fifty-two week low of $65.70 and a fifty-two week high of $172.43. The stock has a market cap of $8.09 billion, a P/E ratio of 58.62, a PEG ratio of 3.49 and a beta of 2.65.

Insider Buying and Selling

In related news, CEO Brett Schulman sold 31,856 shares of CAVA Group stock in a transaction on Monday, June 16th. The stock was sold at an average price of $75.16, for a total transaction of $2,394,296.96. Following the transaction, the chief executive officer directly owned 792,318 shares in the company, valued at approximately $59,550,620.88. The trade was a 3.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Jennifer Somers sold 2,861 shares of the company's stock in a transaction dated Monday, June 16th. The stock was sold at an average price of $75.16, for a total value of $215,032.76. Following the completion of the transaction, the insider directly owned 137,048 shares of the company's stock, valued at approximately $10,300,527.68. This trade represents a 2.04% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 58,603 shares of company stock valued at $4,522,089 over the last ninety days. 6.80% of the stock is owned by insiders.

Institutional Investors Weigh In On CAVA Group

Several hedge funds and other institutional investors have recently modified their holdings of the business. GAMMA Investing LLC boosted its position in CAVA Group by 17,386.7% during the 1st quarter. GAMMA Investing LLC now owns 73,794 shares of the company's stock valued at $6,377,000 after acquiring an additional 73,372 shares in the last quarter. PNC Financial Services Group Inc. increased its stake in shares of CAVA Group by 123.4% in the 1st quarter. PNC Financial Services Group Inc. now owns 5,458 shares of the company's stock valued at $472,000 after purchasing an additional 3,015 shares in the last quarter. SG Americas Securities LLC boosted its holdings in CAVA Group by 768.4% in the 1st quarter. SG Americas Securities LLC now owns 220,816 shares of the company's stock worth $19,081,000 after buying an additional 195,389 shares during the last quarter. Crossmark Global Holdings Inc. acquired a new stake in CAVA Group in the 1st quarter worth about $257,000. Finally, Yousif Capital Management LLC acquired a new position in shares of CAVA Group during the 1st quarter worth approximately $2,429,000. 73.15% of the stock is currently owned by hedge funds and other institutional investors.

CAVA Group Company Profile

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.