Cava Group (NYSE:CAVA) is set to give its latest quarterly earnings report on Tuesday, 2025-11-04. Here's what investors need to know before the announcement.
Analysts estimate that Cava Group will report an earnings per share (EPS) of $0.13.
Anticipation surrounds Cava Group's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings History Snapshot
The company's EPS beat by $0.03 in the last quarter, leading to a 16.63% drop in the share price on the following day.
Here's a look at Cava Group's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.13 | 0.15 | 0.06 | 0.11 |
| EPS Actual | 0.16 | 0.22 | 0.05 | 0.15 |
| Price Change % | -17.00 | -2.00 | 0.00 | 2.00 |
Market Performance of Cava Group's Stock
Shares of Cava Group were trading at $53.73 as of October 31. Over the last 52-week period, shares are down 60.36%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.
Analysts' Take on Cava Group
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Cava Group.
The consensus rating for Cava Group is Neutral, derived from 15 analyst ratings. An average one-year price target of $85.53 implies a potential 59.18% upside.
Analyzing Analyst Ratings Among Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Dutch Bros, Brinker International and Shake Shack, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Dutch Bros, with an average 1-year price target of $80.07, suggesting a potential 49.02% upside.
- Analysts currently favor an Neutral trajectory for Brinker International, with an average 1-year price target of $167.13, suggesting a potential 211.06% upside.
- Analysts currently favor an Neutral trajectory for Shake Shack, with an average 1-year price target of $109.0, suggesting a potential 102.87% upside.
Peers Comparative Analysis Summary
The peer analysis summary presents essential metrics for Dutch Bros, Brinker International and Shake Shack, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Cava Group | Neutral | 20.18% | $74.68M | 2.49% |
| Dutch Bros | Outperform | 27.97% | $120.04M | 4.15% |
| Brinker International | Neutral | 18.45% | $229.60M | 27.84% |
| Shake Shack | Neutral | 15.93% | $175.92M | 2.49% |
Key Takeaway:
Cava Group ranks in the middle among its peers for revenue growth. It is at the bottom for gross profit and return on equity.
About Cava Group
Cava Group Inc owns and operates a chain of restaurants. It is the category-defining Mediterranean fast-casual restaurant brand, bringing together healthful food and bold, satisfying flavors at scale. The company's dips, spreads, and dressings are centrally produced and sold in grocery stores. The company's operations are conducted as two reportable segments: CAVA and Zoes Kitchen. The company generates all of its revenue from the CAVA segment.
Unraveling the Financial Story of Cava Group
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Cava Group displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 20.18%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Cava Group's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.55% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Cava Group's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.49%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Cava Group's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.46%, the company showcases efficient use of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 0.58, Cava Group adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Cava Group visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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