Cava Group (CAVA) closed at $86.16 in the latest trading session, marking a -1.61% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 1.21%.
Shares of the Mediterranean restaurant chain have by 0% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 1.16%, and lagging the S&P 500's gain of 0.47%.
Market participants will be closely following the financial results of Cava Group in its upcoming release. The company plans to announce its earnings on August 12, 2025. The company is forecasted to report an EPS of $0.13, showcasing a 23.53% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $286.56 million, indicating a 22.73% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.58 per share and revenue of $1.19 billion. These totals would mark changes of +38.1% and +23.83%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cava Group. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.29% lower. At present, Cava Group boasts a Zacks Rank of #4 (Sell).
From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 152.3. This expresses a premium compared to the average Forward P/E of 19.22 of its industry.
We can additionally observe that CAVA currently boasts a PEG ratio of 4.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.43 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 170, this industry ranks in the bottom 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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CAVA Group, Inc. (CAVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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