CAVA Group (NYSE:CAVA) Shares Gap Up After Strong Earnings

CAVA Group, Inc. (NYSE:CAVA) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $67.80, but opened at $78.55. CAVA Group shares last traded at $81.9830, with a volume of 4,529,142 shares changing hands.

The company reported $0.04 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.01. CAVA Group had a net margin of 5.40% and a return on equity of 8.51%. The business had revenue of $274.99 million for the quarter, compared to analyst estimates of $268.04 million. During the same period in the prior year, the business posted $0.05 earnings per share. CAVA Group’s revenue was up 20.9% compared to the same quarter last year.

Key Headlines Impacting CAVA Group

Here are the key news stories impacting CAVA Group this week:

• Positive Sentiment: Reported Q4 results that beat Street estimates: $0.04 EPS vs. $0.03 expected and Q4 revenue above estimates; full‑year revenue topped $1 billion — the beat and scale milestone underpin the rally. Business Wire: Q4 Results
• Positive Sentiment: Management gave a constructive 2026 outlook: 74–76 new restaurant openings and same‑restaurant sales growth guidance of roughly 3–5%, signaling continued unit expansion and comp recovery. Seeking Alpha: Openings & Guidance
• Positive Sentiment: Multiple brokers raised price targets and issued buy/outperform ratings (notably TD Cowen and RBC to $90, Piper Sandler to $85 overweight, Telsey to $88, Sanford Bernstein to $84), reflecting bullish analyst reaction to the quarter and growth plan. Benzinga: Analyst Moves
• Neutral Sentiment: Market commentary notes the broader fast‑casual group remains under scrutiny — CAVA’s strong print helps but the sector’s sensitivity to traffic and macro trends keeps some investors cautious. Barron’s: Sector Context
• Neutral Sentiment: Morgan Stanley moved its target to $83 with an equal‑weight rating — a hold viewpoint that will temper upside expectations for some investors. Benzinga: Morgan Stanley
• Negative Sentiment: UBS and Citigroup raised price targets to $75 but kept “neutral” ratings; those targets imply downside from current levels and could cap momentum if investors focus on relative valuation. TickerReport / Benzinga: UBS & Citi

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on CAVA shares. Sanford C. Bernstein upped their price objective on CAVA Group from $75.00 to $84.00 and gave the company an “outperform” rating in a report on Wednesday. Mizuho boosted their target price on CAVA Group from $52.00 to $64.00 and gave the stock a “neutral” rating in a research report on Friday, January 9th. UBS Group increased their price target on shares of CAVA Group from $69.00 to $75.00 and gave the company a “neutral” rating in a research report on Wednesday. Argus decreased their price objective on shares of CAVA Group from $76.00 to $60.00 and set a “buy” rating for the company in a report on Thursday, November 13th. Finally, KeyCorp lowered their target price on shares of CAVA Group from $85.00 to $65.00 and set an “overweight” rating for the company in a research note on Wednesday, November 5th. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $83.22.

Insider Activity

In related news, insider Kenneth Robert Bertram sold 994 shares of the firm’s stock in a transaction on Tuesday, January 27th. The shares were sold at an average price of $62.14, for a total transaction of $61,767.16. Following the sale, the insider directly owned 49,122 shares in the company, valued at $3,052,441.08. This trade represents a 1.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Theodoros Xenohristos sold 1,039 shares of the company’s stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $62.14, for a total transaction of $64,563.46. Following the completion of the transaction, the insider directly owned 332,205 shares of the company’s stock, valued at approximately $20,643,218.70. The trade was a 0.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 39,055 shares of company stock worth $2,572,303. Corporate insiders own 6.80% of the company’s stock.

Institutional Trading of CAVA Group

Several hedge funds and other institutional investors have recently modified their holdings of the company. Global Retirement Partners LLC acquired a new stake in CAVA Group during the second quarter worth approximately $463,000. Y Intercept Hong Kong Ltd lifted its holdings in CAVA Group by 271.7% during the 2nd quarter. Y Intercept Hong Kong Ltd now owns 23,659 shares of the company’s stock worth $1,993,000 after purchasing an additional 17,294 shares during the last quarter. Hantz Financial Services Inc. boosted its stake in CAVA Group by 1,846,775.0% in the 2nd quarter. Hantz Financial Services Inc. now owns 73,875 shares of the company’s stock valued at $6,222,000 after purchasing an additional 73,871 shares during the period. Valeo Financial Advisors LLC bought a new stake in CAVA Group in the 2nd quarter valued at $57,824,000. Finally, Renaissance Capital LLC grew its holdings in CAVA Group by 42.7% in the 3rd quarter. Renaissance Capital LLC now owns 105,730 shares of the company’s stock valued at $6,387,000 after buying an additional 31,651 shares in the last quarter. Institutional investors and hedge funds own 73.15% of the company’s stock.

CAVA Group Trading Up 25.9%

The stock has a market cap of $9.90 billion, a P/E ratio of 158.12, a PEG ratio of 4.98 and a beta of 2.41. The firm has a 50-day simple moving average of $65.30 and a two-hundred day simple moving average of $61.69.

About CAVA Group

CAVA Group, Inc (NYSE: CAVA) is a leading fast-casual restaurant company specializing in Mediterranean-inspired cuisine. Operating under the CAVA brand, the company offers customizable bowls, pitas and salads built around a variety of proteins, grains, fresh vegetables and house-made spreads. With a focus on high-quality ingredients and made-to-order preparation, CAVA aims to deliver a casual yet elevated dining experience for dine-in, takeout and catering customers.

Founded in 2011 in the Washington, DC metro area by Ike Grigoropoulos, Dimitri Katsanis and Brett Schulman, CAVA has pursued an aggressive growth strategy that included the 2018 acquisition of Zoe’s Kitchen.