CAVA Group (NYSE:CAVA) Announces Earnings Results

CAVA Group (NYSE:CAVA) released its quarterly earnings results on Wednesday. The company reported $0.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.01), FiscalAI reports. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. The firm had revenue of $356.44 million for the quarter, compared to the consensus estimate of $358.40 million.

CAVA Group Stock Up 2.4%

CAVA Group stock traded up $1.46 on Wednesday, hitting $61.77. The company’s stock had a trading volume of 5,871,424 shares, compared to its average volume of 3,355,153. The firm has a market cap of $7.22 billion, a P/E ratio of 112.31, a price-to-earnings-growth ratio of 4.94 and a beta of 1.75. The company has a fifty day moving average price of $56.20 and a 200-day moving average price of $71.25. CAVA Group has a one year low of $43.41 and a one year high of $98.79.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Seaport Research Partners began coverage on CAVA Group in a research report on Wednesday, September 16th. They issued a “buy” rating and a $58.00 price target on the stock. Wolfe Research raised their price target on shares of CAVA Group from $79.00 to $82.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 12th. Morgan Stanley raised CAVA Group from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $86.00 to $90.00 in a research report on Wednesday, July 15th. Melius Research upgraded CAVA Group from a “hold” rating to a “buy” rating and set a $95.00 price target on the stock in a research note on Thursday, October 8th. Finally, TD Cowen cut their price target on CAVA Group from $85.00 to $78.00 and set a “buy” rating for the company in a report on Wednesday, October 21st. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat, CAVA Group has a consensus rating of “Moderate Buy” and an average price target of $86.81.

Insider Activity at CAVA Group

In other CAVA Group news, insider Douglas Thompson acquired 6,500 shares of CAVA Group stock in a transaction dated Monday, August 31st. The stock was bought at an average cost of $66.52 per share, with a total value of $432,380.00. Following the acquisition, the insider owned 19,371 shares of the company’s stock, valued at approximately $1,288,558.92. The trade was a 50.50% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 6.70% of the company’s stock.

CAVA Group announced that its board has authorized a share buyback program on Friday, September 18th that allows the company to buy back $100 million in outstanding shares. This buyback authorization allows the company to repurchase up to 1.7% of its shares through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its stock is undervalued.

About CAVA Group

CAVA Group, Inc operates CAVA, a fast-casual restaurant brand serving Mediterranean-inspired food in the United States. Its menu includes customizable bowls and pitas, salads, dips, spreads, grilled proteins, and other Mediterranean dishes, with options designed to accommodate a range of dietary preferences.

The company’s restaurants generally use an assembly-line format that allows customers to build meals from a selection of ingredients and sauces. CAVA also offers its branded dips, spreads, and other products through select grocery and retail channels, extending the brand beyond its restaurant locations.

CAVA was founded in 2010 by Dimitri Moshovitis, Ike Grigoropoulos, and Ted Xenohristos.