Cava Group (CAVA) closed the most recent trading day at $64.35, moving -1.71% from the previous trading session. This change lagged the S&P 500's 0.53% loss on the day. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.93%.
The Mediterranean restaurant chain's stock has climbed by 0.51% in the past month, exceeding the Retail-Wholesale sector's loss of 2.98% and lagging the S&P 500's gain of 1.13%.
Market participants will be closely following the financial results of Cava Group in its upcoming release. The company plans to announce its earnings on November 4, 2025. On that day, Cava Group is projected to report earnings of $0.13 per share, which would represent a year-over-year decline of 13.33%. Meanwhile, our latest consensus estimate is calling for revenue of $293.48 million, up 20.37% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $0.54 per share and a revenue of $1.18 billion, demonstrating changes of +28.57% and +22.53%, respectively, from the preceding 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.81% decrease. Currently, Cava Group is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Cava Group is presently trading at a Forward P/E ratio of 120.29. This indicates a premium in contrast to its industry's Forward P/E of 22.97.
Investors should also note that CAVA has a PEG ratio of 3.37 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry had an average PEG ratio of 2.3 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 221, positioning it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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