In its upcoming report, Cava Group (CAVA) is predicted by Wall Street analysts to post quarterly earnings of $0.14 per share, reflecting an increase of 16.7% compared to the same period last year. Revenues are forecasted to be $330.46 million, representing a year-over-year increase of 27.6%.
The current level reflects a downward revision of 0.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Cava metrics that are routinely monitored and predicted by Wall Street analysts.
According to the collective judgment of analysts, 'Revenue- CAVA Restaurant' should come in at $326.88 million. The estimate suggests a change of +27.5% year over year.
The consensus estimate for 'End of period CAVA Restaurants' stands at 382. The estimate compares to the year-ago value of 323.
The average prediction of analysts places 'Occupancy as a percentage of CAVA Revenue' at 7.6%. The estimate compares to the year-ago value of 8%.
Analysts forecast 'Restaurant-Level profit- CAVA' to reach $83.01 million. Compared to the current estimate, the company reported $64.62 million in the same quarter of the previous year.
View all Key Company Metrics for Cava here>>>
Over the past month, Cava shares have recorded returns of +4.3% versus the Zacks S&P 500 composite's +3.8% change. Based on its Zacks Rank #3 (Hold), CAVA will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CAVA Group, Inc. (CAVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
