Cava Group (CAVA) closed at $68.93 in the latest trading session, marking a -4.9% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.33%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
The Mediterranean restaurant chain's stock has climbed by 2.52% in the past month, exceeding the Retail-Wholesale sector's loss of 3.93% and the S&P 500's loss of 0%.
Market participants will be closely following the financial results of Cava Group in its upcoming release. The company plans to announce its earnings on February 24, 2026. The company is predicted to post an EPS of $0.03, indicating a 40% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $268.17 million, indicating a 17.93% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.52 per share and revenue of $1.17 billion. These totals would mark changes of +23.81% and +21.7%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cava Group. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.47% lower. As of now, Cava Group holds a Zacks Rank of #4 (Sell).
Digging into valuation, Cava Group currently has a Forward P/E ratio of 130.3. This expresses a premium compared to the average Forward P/E of 19.54 of its industry.
It is also worth noting that CAVA currently has a PEG ratio of 5.32. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CAVA's industry had an average PEG ratio of 2.16 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 25% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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