TD Cowen Reaffirms Buy Rating for CAVA Group (NYSE:CAVA)

Key Points

• TD Cowen reaffirmed a Buy rating on CAVA Group and kept a $100 price target, implying about 28% upside from the stock’s current price.
• CAVA’s latest quarter beat expectations, reporting $0.20 EPS versus the $0.17 estimate and $438.27 million in revenue versus $418.46 million expected, with revenue up 32.1% year over year.
• Analyst sentiment remains broadly positive despite the stock’s premium valuation: MarketBeat shows a Moderate Buy consensus with an average target price of $90.12, while shares were trading around $78.05.

CAVA Group (NYSE:CAVA - Get Free Report)'s stock had its "buy" rating restated by investment analysts at TD Cowen in a research note issued on Wednesday,Benzinga reports. They currently have a $100.00 price target on the stock. TD Cowen's price target would indicate a potential upside of 28.12% from the stock's current price.

Other equities analysts have also issued reports about the company. Roth Mkm assumed coverage on CAVA Group in a research note on Tuesday, April 21st. They set a "buy" rating and a $106.00 price target on the stock. Mizuho raised their target price on CAVA Group from $72.00 to $80.00 and gave the stock a "neutral" rating in a research report on Thursday, April 2nd. Guggenheim assumed coverage on shares of CAVA Group in a research note on Thursday, March 26th. They issued a "buy" rating and a $100.00 target price on the stock. Benchmark upped their price objective on CAVA Group from $80.00 to $110.00 and gave the company a "buy" rating in a research note on Monday, April 20th. Finally, Morgan Stanley boosted their price target on CAVA Group from $83.00 to $85.00 and gave the company an "equal weight" rating in a research note on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $90.12.

CAVA Group Price Performance

CAVA stock opened at $78.05 on Wednesday. CAVA Group has a 52-week low of $43.41 and a 52-week high of $98.79. The company has a 50-day moving average of $84.98 and a two-hundred day moving average of $69.27. The stock has a market capitalization of $9.09 billion, a price-to-earnings ratio of 144.54, a price-to-earnings-growth ratio of 5.62 and a beta of 1.90.

CAVA Group (NYSE:CAVA - Get Free Report) last issued its quarterly earnings results on Tuesday, May 19th. The company reported $0.20 EPS for the quarter, topping the consensus estimate of $0.17 by $0.03. CAVA Group had a return on equity of 8.43% and a net margin of 5.40%.The company had revenue of $438.27 million for the quarter, compared to the consensus estimate of $418.46 million. During the same period in the previous year, the business posted $0.22 EPS. The company's revenue for the quarter was up 32.1% on a year-over-year basis. Equities analysts expect that CAVA Group will post 0.52 EPS for the current fiscal year.

Insider Activity at CAVA Group

In other news, insider Theodoros Xenohristos sold 9,044 shares of the firm's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $79.75, for a total value of $721,259.00. Following the completion of the sale, the insider directly owned 327,882 shares in the company, valued at approximately $26,148,589.50. This trade represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 6.70% of the stock is owned by insiders.

Hedge Funds Weigh In On CAVA Group

A number of large investors have recently modified their holdings of CAVA. Los Angeles Capital Management LLC acquired a new position in CAVA Group during the 4th quarter valued at about $25,000. Cornerstone Planning Group LLC lifted its stake in 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 buying an additional 356 shares during the period. Harbor Investment Advisory LLC lifted its stake in 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 buying an additional 400 shares during the period. CNB Bank grew its holdings in CAVA Group by 275.8% during the third quarter. CNB Bank now owns 575 shares of the company's stock valued at $35,000 after purchasing an additional 422 shares during the period. Finally, TD Private Client Wealth LLC grew its holdings in CAVA Group by 118.2% during the fourth 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 period. 73.15% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about CAVA Group

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

• Positive Sentiment: CAVA reported Q1 earnings of $0.20 per share, ahead of the $0.17 consensus estimate, and revenue of $438.27 million versus expectations of $418.46 million, signaling solid operational execution. CAVA Group Reports First Quarter 2026 Results
• Positive Sentiment: Comparable sales and traffic trends came in strong, helping support a raised full-year outlook and boosting confidence that momentum can continue. Cava Revenue Climbs in as Traffic Grows
• Positive Sentiment: Management’s guidance increase and commentary about resilience despite a tougher macro backdrop suggest the growth story remains intact, which is encouraging for investors paying a premium valuation. Cava Defies Restaurant Downturn Fears With Raised Outlook
• Neutral Sentiment: CAVA also highlighted its push into AI, using data tools to predict orders, optimize labor, and personalize customer interactions, which could help long-term efficiency but is not an immediate financial catalyst. Cava wants AI to help power its Mediterranean bowl empire
• Neutral Sentiment: Analyst and media coverage has focused on the earnings beat and valuation debate, reinforcing that investor attention is centered on whether CAVA can sustain high growth after a strong quarter. Cava Group (CAVA) Q1 Earnings and Revenues Beat Estimates
• Negative Sentiment: Despite the strong quarter, CAVA’s earnings per share were slightly below last year’s level, and the stock still trades at a rich valuation, which may limit upside if growth slows. CAVA Group Faces First Comp Sales Test As Growth Story Meets Rich Valuation

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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