CAVA Group (NYSE:CAVA) Stock Gets Downgrade from Wall Street Zen

CAVA Group (NYSE:CAVA) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued on Saturday, Wall Street Zen reports.

CAVA has been the topic of a number of other research reports. KeyCorp decreased their target price on shares of CAVA Group from $80.00 to $75.00 and set an “overweight” rating on the stock in a research report on Thursday. Wolfe Research increased their target price on CAVA Group from $79.00 to $82.00 and gave the stock an “outperform” rating in a report on Wednesday, August 12th. Roth Capital reiterated a “buy” rating and issued a $95.00 price objective (down from $106.00) on shares of CAVA Group in a research report on Wednesday, August 12th. Guggenheim dropped their price target on CAVA Group from $100.00 to $95.00 and set a “buy” rating on the stock in a research note on Thursday, August 13th. Finally, Royal Bank Of Canada dropped their price target on shares of CAVA Group from $85.00 to $80.00 and set an “outperform” rating on the stock in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $83.88.

CAVA Group Stock Performance

CAVA stock opened at $58.92 on Friday. CAVA Group has a one year low of $43.41 and a one year high of $98.79. The company has a 50 day moving average price of $55.73 and a two-hundred day moving average price of $71.09. The stock has a market capitalization of $6.88 billion, a P/E ratio of 112.82, a PEG ratio of 4.94 and a beta of 1.75.

CAVA Group (NYSE:CAVA) last announced its earnings results on Wednesday, November 4th. The company reported $0.11 EPS for the quarter, missing the consensus estimate of $0.12 by ($0.01). The business had revenue of $356.44 million for the quarter, compared to the consensus estimate of $358.40 million. CAVA Group had a return on equity of 8.28% and a net margin of 4.82%. CAVA Group’s revenue for the quarter was up 21.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.12 EPS. Research analysts forecast that CAVA Group will post 0.55 earnings per share for the current fiscal year.

CAVA Group declared that its Board of Directors has initiated a share repurchase program on Friday, September 18th that allows the company to buy back $100 million in outstanding shares. This buyback authorization allows the company to purchase up to 1.7% of its shares through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Transactions at CAVA Group

In other CAVA Group news, insider Douglas Thompson bought 6,500 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The shares were acquired at an average cost of $66.52 per share, for a total transaction of $432,380.00. Following the acquisition, the insider directly owned 19,371 shares of the company’s stock, valued at $1,288,558.92. This trade represents a 50.50% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Corporate insiders own 6.70% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Modern Wealth Management LLC grew its stake in CAVA Group by 4.2% during the 1st quarter. Modern Wealth Management LLC now owns 3,907 shares of the company’s stock worth $313,000 after buying an additional 158 shares during the last quarter. Allworth Financial LP increased its holdings in CAVA Group by 26.8% in the third quarter. Allworth Financial LP now owns 964 shares of the company’s stock worth $52,000 after buying an additional 204 shares during the last quarter. Concurrent Investment Advisors LLC boosted its stake in CAVA Group by 7.4% in the second quarter. Concurrent Investment Advisors LLC now owns 4,356 shares of the company’s stock valued at $342,000 after acquiring an additional 299 shares during the last quarter. Ancora Advisors LLC bought a new position in CAVA Group in the second quarter valued at approximately $27,000. Finally, EverSource Wealth Advisors LLC lifted its position in shares of CAVA Group by 60.7% during the 1st quarter. EverSource Wealth Advisors LLC now owns 1,040 shares of the company’s stock valued at $84,000 after acquiring an additional 393 shares during the period. 73.15% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about CAVA Group

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

• Positive Sentiment: CAVA raised its sales outlook after moving past the cyclospora-related headwind. It also reported 24 net new restaurant openings in the third quarter and projected 76–78 net openings and $184 million–$189 million in adjusted EBITDA for 2026. Sales guidance update 2026 outlook
• Neutral Sentiment: Several analysts cut price targets after the results, though some retained bullish ratings. Citigroup lowered its target to $65 and BNP Paribas Exane to $62, both with neutral ratings; Bernstein, KeyCorp and TD Cowen also reduced targets but maintained positive ratings. Citigroup rating BNP Paribas Exane rating
• Negative Sentiment: Third-quarter EPS of $0.11 missed the $0.12 consensus, and revenue of $356.4 million came in below the $358.4 million estimate, despite growing 21% year over year. Reports also flagged margin and traffic slippage; shares slid 11% following the results. Earnings results Margin and traffic concerns Share decline after results

CAVA Group Company Profile

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.