CAVA (US:CAVA) ZACKSยท2025-08-12 22:56Financial Performance - Cava Group reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, but down from $0.17 per share a year ago, representing an earnings surprise of +23.08% [1] - The company posted revenues of $280.62 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.07%, compared to year-ago revenues of $233.49 million [2] - Over the last four quarters, Cava has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Cava shares have declined approximately 27% since the beginning of the year, while the S&P 500 has gained 8.4% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.16 for the coming quarter and $0.58 for the current fiscal year [4][7] - The estimate revisions trend for Cava was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Retail - Restaurants industry, to which Cava belongs, is currently in the bottom 24% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]