Cava Group (CAVA) closed at $62.94 in the latest trading session, marking a -1.04% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.23% for the day. On the other hand, the Dow registered a gain of 0.72%, and the technology-centric Nasdaq increased by 1.86%.
Coming into today, shares of the Mediterranean restaurant chain had gained 1.58% in the past month. In that same time, the Retail-Wholesale sector lost 1.39%, while the S&P 500 gained 2.45%.
Investors will be eagerly watching for the performance of Cava Group in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 4, 2025. The company is forecasted to report an EPS of $0.13, showcasing a 13.33% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $293.31 million, up 20.3% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.55 per share and a revenue of $1.18 billion, representing changes of +30.95% and +22.53%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Cava Group. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 2.3% decrease. Currently, Cava Group is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Cava Group is at present trading with a Forward P/E ratio of 116.24. For comparison, its industry has an average Forward P/E of 21.92, which means Cava Group is trading at a premium to the group.
It's also important to note that CAVA currently trades at a PEG ratio of 3.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 2.5 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 222, placing it within the bottom 11% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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