CAVA Group (NYSE:CAVA) Shares Gap Up on Earnings Beat

CAVA Group, Inc. (NYSE:CAVA) shares gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $78.12, but opened at $86.88. CAVA Group shares last traded at $81.5630, with a volume of 2,930,355 shares changing hands.

The company reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. The firm had revenue of $438.27 million for the quarter, compared to the consensus estimate of $418.46 million. CAVA Group had a net margin of 5.40% and a return on equity of 8.43%. The business’s quarterly revenue was up 32.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.22 EPS.

Key Stories Impacting CAVA Group

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

• Positive Sentiment: CAVA beat Q1 estimates with EPS of $0.20 versus $0.17 expected and revenue of $438.27 million versus $418.46 million expected, while sales climbed 32.1% year over year. CAVA Group Reports First Quarter 2026 Results
• Positive Sentiment: The company raised full-year expectations, including a plan for 75-77 net new openings and same-restaurant sales growth of 4.5%-6.5%, reinforcing confidence in continued expansion. CAVA outlines raised FY2026 plan
• Positive Sentiment: Wall Street turned more constructive after earnings, with Robert W. Baird lifting its target to $98, Stifel to $105, and TD Cowen reaffirming a buy rating with a $100 target. Analyst price target updates
• Positive Sentiment: CAVA also opened a new restaurant in Columbus, Ohio, showing continued unit growth and deeper Midwest expansion. CAVA Deepens Its Midwest Footprint with New Columbus Restaurant
• Neutral Sentiment: Coverage around CAVA’s AI initiatives and earnings-call transcript adds color to the growth story, but these items are unlikely to move the stock on their own. Cava wants AI to help power its Mediterranean bowl empire

Wall Street Analysts Forecast Growth

CAVA has been the subject of several analyst reports. Piper Sandler reaffirmed an “overweight” rating on shares of CAVA Group in a research note on Wednesday. Robert W. Baird increased their price target on CAVA Group from $88.00 to $98.00 and gave the company an “outperform” rating in a report on Wednesday. Morgan Stanley raised their price target on CAVA Group from $85.00 to $86.00 and gave the stock an “equal weight” rating in a research report on Wednesday. TD Cowen reaffirmed a “buy” rating and set a $100.00 price objective on shares of CAVA Group in a research note on Wednesday. Finally, Mizuho increased their target price on shares of CAVA Group from $72.00 to $80.00 and gave the company a “neutral” rating in a research note on Thursday, April 2nd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $91.59.

Insiders Place Their Bets

In other CAVA Group news, insider Theodoros Xenohristos sold 9,044 shares of the business’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $79.75, for a total value of $721,259.00. Following the completion of the sale, the insider directly owned 327,882 shares of the company’s stock, valued at $26,148,589.50. The trade was a 2.68% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 6.70% of the stock is owned by insiders.

Institutional Trading of CAVA Group

Several institutional investors and hedge funds have recently modified their holdings of the stock. Liontrust Investment Partners LLP bought a new position in shares of CAVA Group during the 3rd quarter worth $43,189,000. Leibman Financial Services Inc. raised its holdings in shares of CAVA Group by 162.9% in the fourth quarter. Leibman Financial Services Inc. now owns 67,324 shares of the company’s stock valued at $3,951,000 after acquiring an additional 41,712 shares in the last quarter. Alliancebernstein L.P. lifted its stake in CAVA Group by 118.3% in the third quarter. Alliancebernstein L.P. now owns 2,953,688 shares of the company’s stock worth $178,432,000 after acquiring an additional 1,600,630 shares during the period. Envestnet Asset Management Inc. grew its holdings in CAVA Group by 57.7% during the 3rd quarter. Envestnet Asset Management Inc. now owns 222,499 shares of the company’s stock worth $13,441,000 after acquiring an additional 81,393 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its position in CAVA Group by 20.4% during the 3rd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 103,706 shares of the company’s stock valued at $6,265,000 after purchasing an additional 17,600 shares during the period. Institutional investors own 73.15% of the company’s stock.

CAVA Group Trading Up 4.0%

The firm has a market cap of $9.46 billion, a PE ratio of 151.52, a P/E/G ratio of 5.62 and a beta of 1.90. The business’s 50-day simple moving average is $84.98 and its 200 day simple moving average is $69.27.

About CAVA Group

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.