Cava Group, Inc. (CAVA)

Price$61.19Cached quoteAs of 2026-09-04 16:23 UTC

AI: Overvalued

Price checkThe stock still carries a rich valuation despite a sharp pullback from its yearly high.

Using the latest close, CAVA’s equity value is about $6.6 billion. Subtracting roughly $436 million of cash and fixed-income investments, and not treating lease liabilities as debt, the midpoint of 2026 adjusted EBITDA guidance implies an enterprise-value-to-EBITDA multiple near 33 times. Enterprise value means the operating business value after adjusting for net cash. That is demanding for a restaurant company, even one growing quickly, so the current price appears to require several more years of strong execution.

Big pictureGrowth is excellent, but the market price assumes that expansion and traffic gains remain unusually strong.

Second-quarter revenue rose 31.3%, same-restaurant sales rose 9.0%, and guest traffic grew 5.3%. CAVA also opened 17 net new restaurants and reaffirmed 75 to 77 openings for fiscal 2026. The bull case assumes roughly 20% or better annual sales growth for several years, mid-single-digit comparable sales, and restaurant margins staying near the mid-20% range. The bear case is low-single-digit comparable sales, slower traffic, and weaker margins as food, labor, delivery, or consumer pressure rises. Restaurant spending is cyclical, meaning traffic can weaken when household budgets tighten.

Business strengthProfitability and cash generation are improving, while the balance sheet provides meaningful room to keep expanding.

Second-quarter net income reached $23.0 million and adjusted EBITDA rose 30.0% to $54.7 million. Through July 12, operating cash flow was $134.5 million and free cash flow was $44.8 million; free cash flow means cash left after capital spending. CAVA held $322.8 million of cash plus $112.8 million of fixed-income investments, had no credit-facility borrowings, and retained $149.1 million of borrowing capacity. Lease liabilities remain substantial because restaurants are rented, but bank debt is currently minimal.

What could change the storyThe story improves if growth stays durable without margin erosion or meaningful dilution; it weakens if either slips.

Capital is being directed mainly toward new restaurants and infrastructure: property and equipment purchases were $89.7 million through July 12. Shares outstanding rose modestly from year-end, and equity compensation was $13.4 million for the first 28 weeks, so dilution remains a watch item; dilution means each existing share owns a slightly smaller percentage of the company. A sustained return to faster traffic growth, stable mid-20% restaurant margins, and strong new-unit economics would support today’s premium. A consumer slowdown or cost spike would challenge it.

AI: News

Second-quarter beatCAVA beat second-quarter expectations, kept strong traffic growth, and reaffirmed its full-year operating outlook.

On August 11, CAVA reported second-quarter revenue growth of 31.3%, same-restaurant sales growth of 9.0%, and guest traffic growth of 5.3%. Adjusted EBITDA rose 30.0% to $54.7 million. Management kept fiscal 2026 guidance at 75 to 77 new restaurants, 4.5% to 6.5% same-restaurant sales growth, and $181 million to $191 million of adjusted EBITDA. Reuters noted management stayed cautious because of food-safety headlines, inflation, and broader economic uncertainty.

Produce scare softened salesA broader produce-safety scare briefly softened sales, even though CAVA was not implicated.

On August 11, Reuters reported that sales softened around early July as customers reacted to a multistate cyclosporiasis outbreak tied to produce; CAVA said it did not use ingredients linked to the outbreak. Same-restaurant sales moderated to flat-to-positive growth before improving weekly and recovering to mid-single-digit growth. The episode matters because CAVA’s fresh-food positioning can make demand sensitive to industry-wide food-safety headlines even when the company itself is not the source.

Board adds retail operatorCAVA added a veteran multi-unit operator to its board as national expansion continues.

On August 3, CAVA announced Amiee Bayer-Thomas, Ulta Beauty’s chief retail officer, had joined its board effective July 29. The company highlighted her experience in multi-unit operations, talent development, real estate, and supply chain. Those skills fit CAVA’s rapid store-opening plan, where site selection, staffing, training, and consistent execution become harder as the footprint expands. The appointment does not change near-term earnings, but it strengthens oversight around the operational systems needed for scale.

Derivative suit disclosedA shareholder derivative lawsuit was disclosed, but it currently seeks no damages from CAVA.

CAVA’s August quarterly filing disclosed that a pension fund filed a derivative action on July 22 against certain current and former officers and directors, alleging fiduciary-duty breaches and unjust enrichment. The case is at a preliminary stage, defendants deny wrongdoing, and the complaint does not seek damages from the company. The direct financial exposure therefore appears limited today, but governance-related litigation can still create legal costs, management distraction, and reputational noise if the case develops.

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Revenue

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Net income

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Free cash flow

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021
Revenue	$1.18B	$963.7M	$728.7M	$564.1M	$500.1M
Gross profit	$290.5M	$241.8M	$180.3M	$98.0M	$82.2M
Gross margin	24.62%	25.09%	24.75%	17.37%	16.43%
Operating expenses	$1.12B	$920.6M	$724.0M	$623.9M	$552.8M
Operating income	$55.3M	$43.1M	$4.7M	−$59.8M	−$52.8M
Operating margin	4.69%	4.47%	0.65%	−10.59%	−10.55%
EBITDA	$128.9M	$103.5M	$52.2M	−$17.0M	−$8.2M
EBITDA margin	10.93%	10.74%	7.16%	−3.02%	−1.64%
Net income	$63.7M	$130.3M	$13.3M	−$59.0M	−$37.4M
Net profit margin	5.40%	13.52%	1.82%	−10.46%	−7.48%
Basic EPSper basic share	$0.55	$1.14	$0.22	-$44.41	-$51.06
Diluted EPSper diluted share	$0.54	$1.10	$0.21	-$44.41	-$51.06

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of CAVA
Holder	Shares held
BlackRock, Inc.	9.65M
Artal Participations S.a r.l.	9.51M
ALLIANCEBERNSTEIN L.P.	6.64M
Artal Group S.A.	6.51M
FMR LLC	5.53M
SHAICH RONALD M	4.54M
VANGUARD CAPITAL MANAGEMENT LLC	4.49M
VANGUARD PORTFOLIO MANAGEMENT LLC	4.21M
STATE STREET CORP	3.1M
PRICE T ROWE ASSOCIATES INC /MD/	3.03M
1832 Asset Management L.P.	2.53M
MORGAN STANLEY	2.13M
Capital International Investors	2.06M
GEODE CAPITAL MANAGEMENT, LLC	2M
WELLINGTON MANAGEMENT GROUP LLP	1.61M
Schulman Brett	1.54M
GOLDMAN SACHS GROUP INC	1.52M
AMERIPRISE FINANCIAL INC	1.47M
Capital Research Global Investors	1.44M
Clearbridge Investments, LLC	1.41M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$668.9K disclosed value

Sells (SEC code S)139$2.51B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 18, 2026Form 4	KOCHEVAR KARENDirector	SellCommon Stock	10.0K	$90.00	$900.0K	3.1K
Jun 17, 2026Form 4	Costanza KellyChief People Officer	SellCommon Stock	12.5K	$90.00	$1.12M	98.5K
Jun 15, 2026Form 4	Costanza KellyChief People Officer	SellCommon Stock	2.9K	$89.43	$256.7K	111.0K
Jun 15, 2026Form 4	Schulman BrettCEO and President	SellCommon Stock	33.2K	$89.43	$2.97M	798.7K
Jun 15, 2026Form 4	Tolivar Tricia K.Chief Financial Officer	SellCommon Stock	5.0K	$89.43	$444.4K	234.9K

Review ownership filings at SEC.gov ↗

Community posts

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@tickerstat21 days ago
CAVA authorizes a $100 million share-repurchase program
CAVA’s ($CAVA) board authorized the repurchase of up to $100 million of common stock. The program runs until September 17, 2027, and may be funded from existing cash and future operating cash flow. Purchases can take place in the market, th ...
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Cava Group, Inc. (CAVA)

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Community posts

CAVA authorizes a $100 million share-repurchase program