DailyIQ
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Sector:Consumer CyclicalAll sectors
Last updated 4 minutes ago

CAVA·CAVA Group, Inc.

$.
-. (-.%)
Pre-Market
High
$68.03
Open
$67.65
Market Cap
8.11B
52W High
$98.79
Low
$67.65
P. Close
$67.70
P/E
127.27
52W Low
$43.41
Fwd P/E
-
DailyIQ Est.
$96.21
Technical Score (1D)
14
SELL
News Sentiment
37
BEARISH
Morgan Stanley upgraded CAVA to Overweight and lifted its price target to $90, the most recent change. The upgrade signals renewed confidence in the company’s growth prospects and its competitive positioning in the Mediterranean fast‑casual segment. Shares reacted immediately, climbing 6.1% after the announcement, indicating short‑term bullish sentiment. The rating shift will likely prompt additional analyst coverage and could influence short‑term trading flows as investors reassess the valuation multiple. In the next 1–10 trading days, the market will be watching the upcoming earnings release for confirmation of revenue and margin trends that underpin the new target. Traders should also monitor any updates on expansion plans or cost‑management initiatives, as these factors directly affect the company’s growth trajectory. The upgrade may also lead to increased analyst attention, as evidenced by CAVA’s inclusion in Wednesday’s top Wall Street research calls. If earnings guidance aligns with the optimistic outlook, the stock could see further upside; if it falls short, the Overweight rating may be questioned. Therefore, keep an eye on the earnings call for any commentary on revenue drivers, margin pressures, and future expansion strategy.
Earnings Summary
CAVA Group, Inc. operates as a fast-casual restaurant chain specializing in Mediterranean-inspired cuisine, primarily in the United States. The company also generates revenue through the retail sale of its products in grocery stores and offers online and mobile ordering options. CAVA operates within the competitive Consumer Cyclical sector, specifically the Restaurants industry, focusing on a customizable and health-conscious dining experience. In its most recent reported quarters, CAVA demonstrated significant revenue growth, with Q1 2026 revenue reaching $438.3 million, a substantial increase from $275.0 million in Q4 2025. EPS also saw an upward trend, moving from $0.04 in Q4 2025 to $0.20 in Q1 2026. Comparing the last two quarters (Q4 2025 and Q1 2026) to the prior two (Q2 2025 and Q3 2025), revenue has shown a strong acceleration, while EPS has also improved. CAVA has a mixed beat/miss pattern, having missed EPS estimates in Q4 2024 ($0.05 actual vs $0.06 estimated) and Q3 2025 ($0.12 actual vs $0.13 estimated), but beat estimates in Q1 2025 ($0.22 actual vs $0.15 estimated), Q2 2025 ($0.16 actual vs $0.14 estimated), and Q4 2025 ($0.04 actual vs $0.03 estimated). The company's year-over-year revenue growth trajectory has been robust, particularly highlighted by the 32.2% increase in Q1 2026 revenue. Recent news indicates strong first-quarter results with revenue up 32.2% year-over-year, driven by same-restaurant sales growth and increased customer traffic, leading to raised full-year guidance. The company also continued its aggressive expansion, adding 20 net new restaurants. Analysts have shown optimism, with some raising price targets due to strong business trends and the successful rollout of a new glazed salmon offering. However, there is also a note of caution regarding a potential first decline in comparable-store sales, which will be a critical test. Investors will be watching for the sustained momentum in traffic and sales throughout the fiscal year, the impact of continued expansion, and whether the company can maintain its growth trajectory amidst potential challenges and new menu item performance. Key will be the ability to sustain positive comparable-store sales trends and manage inflationary pressures effectively.

EPS

EstBeatMiss
$-0.00$0.06$0.12$0.19$0.25Q1'25Q2'25Q3'25Q4'25Q1'26
QtrEstActual+/−
Q1'26$0.18$0.20+11.7%
Q4'25$0.03$0.04+52.1%
Q3'25$0.13$0.12-7.3%
Q2'25$0.14$0.16+15.6%
Q1'25$0.15$0.22+48.8%

Revenue

EstBeatMiss
$249M$302M$356M$409M$463MQ1'25Q2'25Q3'25Q4'25Q1'26
QtrEstActual+/−
Q1'26$419M$438M+4.5%
Q4'25$273M$275M+0.6%
Q3'25 - $292M -
Q2'25 - $281M -
Q1'25 - $332M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

CAVA Stock Snapshot

CAVA is currently trading at $67.68, giving CAVA Group, Inc. a market cap of 8.11B and a P/E ratio of 127.3. Today's range spans $67.65–$68.03, with shares opening at $67.65 and moving down $0.02 (0.0%) from the prior close. DailyIQ's technical score sits at 14/100 (SELL) with a news sentiment reading of 37/100.

Over the past year CAVA has traded between $43.41 and $98.79 - the current price is +55.9% off the 52-week low and -31.5% from the high. 37 analysts cover the stock with a Hold consensus and a mean 12-month target of $93.04 (range $55.00–$110.00), implying upside of +37.5%.

CAVA is at $67.68 (in the middle of its 52-week range within $43.41–$98.79), carrying a SELL technical signal (14/100) and bearish sentiment (37/100). (P/E: 127.3) At 8.11B in Consumer Cyclical market cap, a non-bullish setup doesn't necessarily mean fundamental deterioration - sometimes it means the stock is in a dead money phase where patience is the only viable strategy. Tracking volume alongside price action is especially important at this tier.

The absence of strong institutional sponsorship makes CAVA's SELL signal (14/100) more consequential than the same signal in a larger name — at 8.11B in Consumer Cyclical market cap, there are fewer natural buyers to absorb selling pressure, which means the $43.41–$98.79 range's lower bound becomes a sharper test of the thesis. Sentiment at 37/100 (bearish) and price at $67.68 (in the middle of its 52-week range) don't yet suggest stabilization is imminent.