Shares of CAVA Group Inc (NYSE:CAVA) are spiraling this morning, despite beating second-quarter earnings estimates with $0.16 per share.
Cava (NYSE:CAVA) has reported its second quarter earnings, with investors reacting negatively to a miss on same-store sales growth and revenue for the period. The Mediterranean fast-casual restaurant chain posted same-store sales growth of 2.1%, far below estimates of 6.3%.
Shares of CAVA Group (CAVA) sank nearly 25% in premarket trading Wednesday, a day after the fast-casual restaurant chain posted weaker-than-expected results and cut its outlook on slowing sales.
Cava CEO Brett Schulman joins 'Squawk Box' to discuss the company's quarterly earnings results, cutting full-year outlook, state of the consumer, growth outlook, and more.
CAVA shares plunged 22% after Q2 same-restaurant sales growth of 2.1% missed expectations, despite 20.3% revenue growth and solid new restaurant openings. Brazil announced $5.6 billion in aid to exporters after the U.S. hiked tariffs, with further support packages planned for affected industries.
I am upgrading CAVA to hold as the valuation has improved after a significant stock drop, despite a disappointing Q2 earnings report. Q2 showed modest same-restaurant sales growth, raising concerns about CAVA's ability to deliver high growth. While expansion plans remain robust, slower revenue per restaurant growth and increased costs temper my long-term optimism for outsized returns.
CAVA Group, Inc. (NYSE:CAVA ) Q2 2025 Earnings Conference Call August 12, 2025 5:00 PM ET Company Participants Brett Schulman - Co-Founder, CEO, President & Director Matt Milanovich - Senior Vice President of Finance Tricia K. Tolivar - Chief Financial Officer Conference Call Participants Andrew Marc Barish - Jefferies LLC, Research Division Andrew Michael Charles - TD Cowen, Research Division Brian Hugh Mullan - Piper Sandler & Co., Research Division Brian James Harbour - Morgan Stanley, Research Division Brian Michael Vaccaro - Raymond James & Associates, Inc., Research Division Christopher Thomas O'Cull - Stifel, Nicolaus & Company, Incorporated, Research Division Danilo Gargiulo - Sanford C.
CAVA Group is a fast-growing Mediterranean restaurant chain with strong store-level margins and impressive same-store sales growth, outperforming major competitors in traffic and revenue growth. Despite robust fundamentals and positive customer sentiment, CAVA trades at a very high valuation on P/E, EV/EBITDA, and price-to-sales metrics compared to peers. Recent guidance lowered same store sales growth somewhat, leading to a huge after-hours selloff and a potential opportunity.
Although the revenue and EPS for Cava (CAVA) give a sense of how its business performed in the quarter ended June 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Cava Group (CAVA) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.17 per share a year ago.
Cava's quarterly revenue missed estimates due to weaker-than-expected same-store sales growth. The Mediterranean restaurant chain lowered its full-year forecast for same-store sales.
CAVA's Q2 performance is likely to have seen strong sales growth, but mounting cost and valuation pressures may weigh on its near-term appeal.