CAVA Group (NYSE:CAVA) Upgraded by Northcoast Research to “Neutral” Rating

CAVA Group (NYSE:CAVA) was upgraded by research analysts at Northcoast Research from a “sell” rating to a “neutral” rating in a report issued on Thursday,Finviz reports.

Other equities research analysts have also recently issued reports about the stock. Sanford C. Bernstein reissued an “outperform” rating on shares of CAVA Group in a research report on Wednesday. Barclays raised their price target on CAVA Group from $70.00 to $74.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 20th. KeyCorp decreased their price objective on CAVA Group from $110.00 to $95.00 and set an “overweight” rating for the company in a report on Wednesday. Benchmark increased their target price on shares of CAVA Group from $80.00 to $110.00 and gave the stock a “buy” rating in a report on Monday, April 20th. Finally, DA Davidson raised their target price on shares of CAVA Group from $80.00 to $84.00 and gave the company a “neutral” rating in a research report on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $90.00.

CAVA Group Stock Up 15.0%

CAVA Group stock opened at $69.92 on Thursday. The company has a market cap of $8.14 billion, a PE ratio of 127.13, a price-to-earnings-growth ratio of 4.17 and a beta of 1.74. CAVA Group has a twelve month low of $43.41 and a twelve month high of $98.79. The company’s 50-day moving average price is $73.03 and its 200-day moving average price is $76.82.

CAVA Group (NYSE:CAVA) last released its quarterly earnings results on Tuesday, August 11th. The company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.01. CAVA Group had a return on equity of 8.43% and a net margin of 4.82%.The company had revenue of $368.44 million for the quarter, compared to analyst estimates of $360.09 million. During the same quarter in the prior year, the firm posted $0.16 EPS. CAVA Group’s quarterly revenue was up 31.3% compared to the same quarter last year. As a group, sell-side analysts expect that CAVA Group will post 0.54 earnings per share for the current fiscal year.

Insider Buying and Selling at CAVA Group

In other news, Director Karen Kochevar sold 10,000 shares of the company’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $90.00, for a total transaction of $900,000.00. Following the transaction, the director owned 3,074 shares in the company, valued at $276,660. This represents a 76.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Tricia K. Tolivar sold 4,969 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $89.43, for a total transaction of $444,377.67. Following the completion of the transaction, the chief financial officer directly owned 234,931 shares of the company’s stock, valued at $21,009,879.33. The trade was a 2.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 82,703 shares of company stock valued at $7,249,579. Insiders own 6.70% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. FNY Investment Advisers LLC acquired a new stake in shares of CAVA Group during the second quarter worth $31,000. Los Angeles Capital Management LLC acquired a new position in shares of CAVA Group in the 4th quarter valued at $25,000. TD Private Client Wealth LLC increased its position in shares of CAVA Group by 118.2% in the 4th quarter. TD Private Client Wealth LLC now owns 600 shares of the company’s stock valued at $35,000 after acquiring an additional 325 shares during the period. EverSource Wealth Advisors LLC raised its stake in CAVA Group by 115.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 647 shares of the company’s stock worth $38,000 after acquiring an additional 347 shares during the last quarter. Finally, Allworth Financial LP raised its stake in CAVA Group by 57.4% in the 4th quarter. Allworth Financial LP now owns 650 shares of the company’s stock worth $38,000 after acquiring an additional 237 shares during the last quarter. Hedge funds and other institutional investors own 73.15% of the company’s stock.

Key Headlines Impacting CAVA Group

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

• Positive Sentiment: Quarterly beat and strong sales growth: CAVA reported adjusted earnings of $0.19 per share versus the $0.18 consensus estimate, while revenue reached approximately $368.4 million, above expectations near $360.1 million. Revenue increased 31.3% year over year, and profit rose from $0.16 per share in the prior-year quarter. Cava Group Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Healthy underlying demand: Same-restaurant sales rose about 9% to 9.7%, with traffic growth a key driver. Robust guest visits, continued unit expansion and strong performance from newer restaurants suggested that consumers remain willing to spend at CAVA despite broader economic concerns. What Drove CAVA Same-Store Sales Up 9.7%
• Positive Sentiment: Food-safety fears appear manageable: Analysts characterized the business as resilient and said CAVA was recovering faster than expected from recent cyclospora-related concerns. The company also reiterated its fiscal 2026 same-restaurant sales outlook of 4.5% to 6.5%, supporting investor confidence in its longer-term growth trajectory. CAVA Reiterates Fiscal 2026 Outlook
• Positive Sentiment: Analyst support: RBC raised its price target to $95 and maintained an “outperform” rating. Other analysts remained bullish following the earnings release, reinforcing the view that traffic and unit growth can offset near-term operating pressures. What Analysts Are Saying About CAVA After Earnings
• Neutral Sentiment: Margins remain a concern: Higher food, labor and delivery costs pressured profitability, meaning CAVA’s elevated growth valuation depends on continued sales momentum and successful new-store execution. KeyCorp and Roth Capital kept positive ratings but lowered their price targets to $95 from $110 and $106, respectively.
• Negative Sentiment: Industry food-safety overhang: A cyclospora outbreak caused a sharp decline in lettuce prices and has made some diners more cautious about leafy greens. Although CAVA’s results suggest limited damage so far, renewed concerns could weigh on restaurant traffic.

CAVA Group Company Profile

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.