CAVA Group (NYSE:CAVA) Announces Earnings Results, Misses Expectations By $0.01 EPS

CAVA Group (NYSE:CAVA) released its quarterly earnings data on Wednesday. The company reported $0.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.01), FiscalAI reports. CAVA Group had a net margin of 4.82% and a return on equity of 8.28%. The firm had revenue of $356.44 million for the quarter, compared to analyst estimates of $358.40 million.

CAVA Group Price Performance

Shares of CAVA stock traded up $1.46 during trading on Wednesday, reaching $61.77. The company had a trading volume of 5,871,424 shares, compared to its average volume of 3,355,153. The firm’s 50 day simple moving average is $56.20 and its two-hundred day simple moving average is $71.25. CAVA Group has a one year low of $43.41 and a one year high of $98.79. The company has a market capitalization of $7.22 billion, a PE ratio of 112.31, a PEG ratio of 4.94 and a beta of 1.75.

Insider Transactions at CAVA Group

In related news, insider Douglas Thompson bought 6,500 shares of the firm’s stock in a transaction on Monday, August 31st. The stock was purchased at an average price of $66.52 per share, with a total value of $432,380.00. Following the completion of the transaction, 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 transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 6.70% of the stock is owned by insiders.

CAVA Group declared that its Board of Directors has approved a share buyback plan on Friday, September 18th that authorizes the company to buy back $100 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 1.7% of its stock through open market purchases. Share buyback plans are generally an indication that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

CAVA has been the subject of a number of recent research reports. Citigroup cut their price target on CAVA Group from $79.00 to $66.00 and set a “neutral” rating for the company in a research note on Thursday, October 22nd. Guggenheim lowered their price target on CAVA Group from $100.00 to $95.00 and set a “buy” rating for the company in a research note on Thursday, August 13th. Morgan Stanley raised CAVA Group from an “equal weight” rating to an “overweight” rating and boosted their price target for the company from $86.00 to $90.00 in a research note on Wednesday, July 15th. Royal Bank Of Canada dropped their price objective on CAVA Group from $95.00 to $85.00 and set an “outperform” rating on the stock in a report on Thursday, September 17th. Finally, TD Cowen cut their price objective on shares of CAVA Group from $85.00 to $78.00 and set a “buy” rating on the stock in a research report on Wednesday, October 21st. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $86.81.

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.