| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 15 | 99.4x | 17.8x | Bottom tier | |
Growth | 65 | 26.8% | 7.1% | Around median | |
Quality | 35 | 4.0% | 4.5% | Bottom tier | |
Safety | 60 | 4.1x | 2.6x | Around median | |
Capital Return | 18 | — | 2.12% | Bottom tier | |
Momentum | 20 | -8.5% | 2.9% | Bottom tier | |
Sentiment | 64 | 20 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
CAVA Group operates a fast-casual restaurant chain focused on Mediterranean cuisine and meals rich in protein and fiber, generating revenue primarily from restaurant sales. The company ended Q2 fiscal 2026 with 476 restaurants across 29 states and the District of Columbia, after opening 17 net new restaurants during the quarter, while operating traditional locations itself and entering airports through licensed partners. System-wide average unit volume was $3.1 million per unit, and the company supports demand through menu innovation, such as Pomegranate Glazed Salmon, its loyalty platform, and Flavor Passport experiences.
In Q2 fiscal 2026, CAVA's revenue increased 31.3% year over year to $365.4 million, and same-restaurant sales grew 9%, supported by a 5.3% increase in guest traffic. Restaurant-level profit was $93.8 million, or 25.7% of revenue, compared with $73.3 million and a 26.3% margin in the corresponding period, while adjusted earnings before interest, taxes, depreciation, and amortization increased 30% to $54.7 million. The company reported net income of $23 million and diluted earnings per share of $0.19, compared with net income of $18.4 million and earnings per share of $0.16 in Q2 fiscal 2025.
For fiscal 2025, revenue was $1.2 billion, net income was $63.7 million, and earnings per share were $0.54, compared with revenue of $963.7 million, net income of $130.3 million, and earnings per share of $1.10 in fiscal 2024. In Q2 fiscal 2026, restaurant economics consisted of food, beverage, and packaging costs equal to 30% of revenue, labor costs of 25.3%, occupancy costs of 6.3%, and other operating expenses of 12.8%. This mix shows strong growth in sales and adjusted operating profit, but it also highlights pressure from ingredient, wage, and delivery costs on restaurant margins.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $90.71, within a wide range of $70 to $106, with a consensus rating of “Buy”; the average is below the 52-week range high of $98.79, while the highest target exceeds that high. No price-to-earnings ratio is available in the data, and the breadth of the 52-week range between $43.41 and $98.79 and the breadth of analyst targets increase the valuation's sensitivity to the path of sales growth and restaurant margins, particularly given the slowdown in full-year guidance compared with Q2 growth and pressure from food and wage costs.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue increased 31.3% year over year to $365.4 million, driven by 9% same-restaurant sales growth and a 5.3% increase in guest traffic. The company added 17 net new restaurants and ended the quarter with 476 restaurants, with new-restaurant productivity exceeding 100%. Adjusted earnings before interest, taxes, depreciation, and amortization increased 30% to $54.7 million, while net income was $23 million and diluted earnings per share were $0.19.
The company expects to open 75 to 77 net new restaurants during fiscal 2026 and achieve same-restaurant sales growth between 4.5% and 6.5%. It expects a restaurant-level profit margin between 23.7% and 24.3% and pre-opening expenses between $22 million and $22.5 million. It also expects adjusted earnings before interest, taxes, depreciation, and amortization between $181 million and $191 million, and reaffirmed these ranges on the August 11, 2026 call.
CAVA launched Pomegranate Glazed Salmon nationwide in Q2 fiscal 2026, and adoption and performance were in line with management's expectations. The product helped increase the rate of new customers and raise visit frequency among loyalty members who purchased it, and its order rate remained stable during the quarter. In contrast, its costs contributed to a 50-basis-point increase in food, beverage, and packaging costs to 30% of revenue, and the product will remain available through the end of fiscal 2026.
CAVA ended Q2 fiscal 2026 with no debt and $435.6 million in cash and investments. It also had an undrawn $150 million credit facility, with an option to increase liquidity if needed. Fiscal year-to-date operating cash flow was $134.5 million and free cash flow was $44.8 million, marking the tenth consecutive quarter of positive fiscal year-to-date cash flow.
Management said on August 11, 2026 that CAVA does not import leafy greens from Mexico or serve iceberg lettuce, but it experienced short-term sales weakness due to broad consumer concerns related to the Cyclospora outbreak. Same-restaurant sales initially declined to a flat or slightly positive range, then improved weekly until returning to mid-single-digit growth in the latest week mentioned. The company did not detect an immediate impact from the Salmonella outbreak, and it confirmed that it does not work with the farms linked to it and continues to monitor the situation with its food safety advisory council.
Restaurant-level profit margin declined to 25.7% in Q2 fiscal 2026 from 26.3% in the corresponding period, despite restaurant-level profit increasing 28.1% to $93.8 million. Labor costs increased 30 basis points to 25.3% of revenue after an additional 3% investment in wages, while other operating expenses increased 40 basis points to 12.8% because of a higher share of third-party delivery. Management expects additional pressure from fuel surcharges and pre-marinated chicken, along with a seasonal decline of approximately 300 basis points in the Q4 margin compared with Q3.
