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CAVA (CAVA) - 2025 Q3 - Quarterly Results
2025-11-04 21:17
Exhibit 99.1 CAVA GROUP REPORTS THIRD QUARTER 2025 RESULTS YEAR OVER YEAR CAVA REVENUE GROWTH OF 20.0% INCLUDING CAVA SAME RESTAURANT SALES GROWTH OF 1.9% 17 NET NEW CAVA RESTAURANT OPENINGS DURING QUARTER THIRD QUARTER 2025 CAVA RESTAURANT-LEVEL PROFIT MARGIN OF 24.6% WASHINGTON, D.C. (November 4, 2025) - CAVA Group, Inc. (NYSE: CAVA) ("CAVA Group" or the "Company"), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced financial r ...
Cava cuts full-year forecast, in another warning sign for fast-casual restaurants
CNBC· 2025-11-04 21:11
Core Insights - Cava has reduced its full-year forecast for the second consecutive quarter due to decreased visits from younger consumers [1][4] Company Performance - Cava's same-store sales are now projected to increase by 3% to 4%, down from a previous forecast of 4% to 6% [4] - The company expects lower restaurant-level profit margins, revising projections to a range of 24.4% to 24.8%, down from 24.8% to 25.2% [4] - Cava's net sales increased by 20% to $292.2 million, driven by new restaurant openings, with a total of 415 locations as of October 5 [7] - The fiscal third-quarter net income was reported at $14.7 million, or 12 cents per share, down from $18 million, or 15 cents per share, a year earlier [8] Market Trends - The 25- to 34-year-old demographic is visiting fast-casual restaurants less frequently, influenced by higher unemployment rates and resumed student loan repayments [2][3] - Cava is gaining market share despite slower same-store sales growth, indicating that younger consumers may be opting to cook at home or pack lunches [6] - Unlike competitors, Cava is experiencing higher same-store sales growth from low-income consumers, attributed to keeping menu prices below inflation [6][7] Earnings Report - Cava's same-store sales rose by 1.9%, falling short of Wall Street's expectations of 2.8% [5] - Revenue reported was $292.2 million, slightly below the expected $292.6 million [9] - Adjusted earnings per share were 12 cents, in line with expectations [9]
CAVA Group Reports Third Quarter 2025 Results
Businesswire· 2025-11-04 21:10
Core Insights - CAVA Group reported a revenue growth of 20.0% year-over-year, reaching $289.8 million for the third quarter of fiscal 2025, driven by new restaurant openings and same restaurant sales growth of 1.9% [4][6][8] - The company opened 17 net new restaurants during the quarter, increasing the total number of CAVA restaurants to 415, a 17.9% increase year-over-year [6][27] - CAVA's restaurant-level profit margin was 24.6%, a slight decrease from 25.6% in the same quarter of the previous year, attributed to higher operating costs and a mix of third-party delivery [5][6] Financial Performance - Revenue for the third quarter of fiscal 2025 was $289.8 million, up from $241.5 million in the prior year quarter, marking a 20.0% increase [4][6] - Same restaurant sales growth was 1.9%, primarily driven by menu price adjustments and product mix, with guest traffic remaining flat [4][6] - Restaurant-level profit was $71.2 million, reflecting a 15.1% increase compared to the prior year quarter [6][8] Operational Highlights - CAVA's average unit volumes (AUV) for the 2025 cohort are trending above $3 million, indicating strong productivity from new restaurant openings [2][6] - Digital revenue accounted for 37.6% of total revenue, showcasing the company's successful integration of digital sales channels [6] - General and administrative expenses were $31.5 million, or 10.8% of revenue, down from 12.2% in the same quarter of the previous year, reflecting improved operational efficiency [7][8] Future Outlook - CAVA Group updated its fiscal full-year 2025 guidance, maintaining expectations for net new restaurant openings between 68 to 70 and adjusting same restaurant sales growth to 3.0% to 4.0% [11] - The company anticipates a restaurant-level profit margin of 24.4% to 24.8% and adjusted EBITDA of $148.0 million to $152.0 million for the full year [11]
“消费信心跌至数十年最差水平”!高盛警告美国中产消费“失速”,25-35岁人群“捂紧钱包”
美股IPO· 2025-11-01 16:03
Core Viewpoint - Goldman Sachs warns that consumer weakness has spread from low-income groups to the middle class, particularly affecting consumers aged 25-35, with many executives reporting the worst consumer confidence in decades [1][3]. Group 1: Consumer Sentiment and Market Performance - Goldman Sachs' consumer goods expert Scott Feiler notes a significant shift in market discussions, with more companies reporting a slowdown in consumption that now includes middle-income groups [3]. - The non-essential consumer goods sector has underperformed the market by 500 basis points over the past two weeks, indicating a broader market concern [3][9]. - Kraft Heinz CEO Carlos Abrams-Rivera stated that the company is facing one of the worst consumer confidence levels in decades, leading to a downward revision of annual sales guidance by 3% to 3.5% [3][5]. Group 2: Impact on Specific Companies - Chipotle's stock plummeted by 17%, citing reduced spending frequency among lower and middle-income customers due to pressures like unemployment and stagnant wage growth [5]. - CAVA and home goods retailer SG also saw significant stock declines of 11% and 9.6%, respectively, reflecting the broader trend of reduced consumer spending [5]. - O'Reilly Automotive reported moderate pressure on DIY transactions, indicating a reaction from consumers to rising prices [6]. Group 3: Broader Economic Indicators - The consumer discretionary sector has faced severe sell-offs, with non-essential goods underperforming the market by 400 basis points this week alone [8][9]. - Despite the overall consumer spending slowdown, high-end market segments remain resilient, with Visa reporting strong performance across various spending categories [9]. - Starbucks noted positive growth in transaction volume, particularly in its university and campus business, indicating some segments of the market are still thriving [9].
CAVA Group, Inc. (NYSE:CAVA) Faces Challenges Amid Expansion
Financial Modeling Prep· 2025-11-01 00:05
Chris O'Cull from Stifel Nicolaus lowered the price target for NYSE:CAVA to $100, indicating potential growth despite current challenges.CAVA's upcoming third-quarter earnings report is highly anticipated, with a history of surpassing earnings expectations but facing a projected decline in EPS.The stock is trading near its 52-week low, raising questions among investors about whether it presents a buying opportunity ahead of the earnings report.CAVA Group, Inc. (NYSE:CAVA) is a fast-casual restaurant chain k ...
CAVA Stock Before Q3 Earnings: Is it Time to Buy or Sit Tight?
ZACKS· 2025-10-31 17:51
Core Insights - CAVA Group, Inc. is set to release its third-quarter 2025 results on November 4, with previous earnings surpassing estimates by 23.1% in the last quarter [1] - The consensus estimate for Q3 earnings per share (EPS) remains at 13 cents, reflecting a 13.3% decline from the previous year's EPS of 15 cents, while revenue is projected at $293.3 million, indicating a 20.3% year-over-year growth [2] Earnings Prediction - The current Earnings ESP for CAVA is -5.77%, indicating that the model does not predict an earnings beat this time [3] - CAVA holds a Zacks Rank of 4 (Sell), suggesting a less favorable outlook [4] Factors Influencing Performance - CAVA's revenue growth in Q3 is expected to be driven by strong restaurant expansion, robust average unit volumes, and entry into new markets like Michigan and Pittsburgh [5] - Menu innovation, including the nationwide rollout of chicken shawarma and new product offerings, is anticipated to enhance traffic and average check growth [6] - Operational improvements, such as the Connected Kitchen initiative, are likely to support revenue momentum by enhancing order accuracy and throughput [9] Margin Pressures - Rising costs, inflation in key proteins, and investments in wage increases may pressure CAVA's quarterly margins [10] - The introduction of premium menu items and ongoing investments in technology and new restaurant openings could further increase expenses [10] Stock Performance and Valuation - CAVA's stock has declined by 59.2% over the past year, underperforming its industry peers and the broader market [11] - The company is currently valued at a premium compared to its industry, with a forward 12-month price-to-sales ratio of 4.47, higher than the industry average [15] Investment Considerations - Investors may consider avoiding CAVA stock ahead of the earnings release due to uncertainties surrounding profitability and valuation [18] - While revenue momentum is solid, margin pressures from rising costs and cautious market sentiment could lead to further downside if earnings disappoint [19]
3 Promising Growth Stocks That Are Down Around 60% From Their Highs
The Motley Fool· 2025-10-31 08:55
Core Viewpoint - Despite recent declines, certain growth stocks are still considered strong long-term investment opportunities due to their potential for recovery and growth [1]. Group 1: Viking Therapeutics (VKTX) - Viking Therapeutics' stock is down nearly 57% from its 52-week high of $81.73, primarily due to concerns over the high discontinuation rate of its leading drug VK2735 in clinical trials [4][5]. - The company is still developing VK2735, with an injectable version in late-stage trials, which could serve as a significant growth catalyst if approved [5][7]. - Currently, Viking Therapeutics has a market cap of $4 billion, with a current stock price of $38.17, and it has shown potential for weight loss of up to 14.7% after 13 weeks of treatment [6][7]. Group 2: Cava Group (CAVA) - Cava Group's share prices have decreased over 46% this year and are down nearly 65% from their 52-week high of $172.43, attributed to a slowdown in growth [8][9]. - The company's same-store sales growth was only 2.1% in the most recent quarter, a significant drop from 14.4% a year ago, yet it remains positive amid challenging economic conditions [9]. - Cava Group has plans to expand from 400 to 1,000 locations by 2032, indicating potential for future growth despite current challenges [9][11]. Group 3: Figma (FIG) - Figma's stock has fallen from a high of $142.92 to around $53, reflecting a significant decline since its public debut [12][15]. - The company has a market cap of $24 billion and reported $249.6 million in revenue for the period ending June 30, representing a 41% increase year-over-year [13][15]. - Figma's valuation is comparable to Adobe's previous bid of $20 billion for the company, suggesting it may be undervalued at its current price [13][15].
Why CAVA stock is trading near 52-week low: should you buy the dip?
Invezz· 2025-10-30 16:45
Group 1 - CAVA stock (NYSE: CAVA) has experienced a significant decline, trading near a 52-week low of $54.90, which represents a 68% drop from its previous high of $172.43 [1]
Unlocking Q3 Potential of Cava (CAVA): Exploring Wall Street Estimates for Key Metrics
ZACKS· 2025-10-30 14:17
Core Insights - Analysts project that Cava Group (CAVA) will report quarterly earnings of $0.13 per share, reflecting a year-over-year decline of 13.3% while revenues are expected to reach $293.31 million, marking a 20.3% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 18% in the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue and Sales Growth - Analysts estimate that 'Revenue- CAVA Restaurant' will reach $292.18 million, representing a year-over-year change of +21% [4] - The average prediction for 'CAVA Same Restaurant Sales Growth' is 3.2%, a significant decrease from the previous year's figure of 18.1% [5] Restaurant Metrics - The estimated number of 'End of period CAVA Restaurants' is 416, up from 352 year-over-year [5] - Analysts project 17 new CAVA restaurant openings, including converted Zoes Kitchen locations, compared to 11 in the previous year [5] Profitability and Occupancy - 'Occupancy as a percentage of CAVA Revenue' is expected to be 6.7%, slightly down from 6.8% in the same quarter last year [6] - 'Restaurant-Level profit- CAVA' is estimated to reach $73.71 million, an increase from $61.82 million year-over-year [6] Stock Performance - Cava shares have decreased by 2% over the past month, contrasting with the Zacks S&P 500 composite's increase of 3.6% [6] - CAVA holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near term [6]
Jim Cramer on CAVA: “I Think You Gotta Buy the Stock at $62”
Yahoo Finance· 2025-10-29 15:40
Group 1 - CAVA Group, Inc. is recognized for its strong growth potential, with Jim Cramer recommending the stock at a price of $62, noting it has decreased by 44% [1] - The company operates a restaurant chain and sells dips, spreads, and dressings through grocery retailers, indicating a diversified business model [2] - CEO Brett Schulman highlighted the challenging macroeconomic climate, suggesting that CAVA may need to lower prices or introduce lower-priced dishes to attract consumers [2] Group 2 - CAVA is compared to Sweetgreen, indicating that both companies face similar pricing challenges in the current market [2] - There is a mention of the potential for AI stocks to offer greater upside with less downside risk compared to CAVA, suggesting a competitive investment landscape [2]