CAVA (US:CAVA) ZACKS·2025-10-28 15:01Core Viewpoint - Cava Group (CAVA) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending September 2025, with the consensus outlook indicating a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for November 4, and if the results exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The consensus estimate for Cava's quarterly earnings is projected at $0.13 per share, reflecting a year-over-year decrease of 13.3%, while revenues are expected to reach $293.31 million, marking a 20.3% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 18.02%, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Cava is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.77%, coupled with a Zacks Rank of 4, suggesting a challenging outlook for beating the consensus EPS estimate [11]. Earnings Surprise History - In the last reported quarter, Cava was expected to post earnings of $0.13 per share but actually delivered $0.16, resulting in a positive surprise of 23.08% [12]. - Over the past four quarters, Cava has surpassed consensus EPS estimates three times [13]. Industry Comparison - Shake Shack (SHAK), another player in the Zacks Retail - Restaurants industry, is expected to report earnings of $0.31 per share for the same quarter, indicating a year-over-year increase of 24%, with revenues projected at $363.46 million, up 14.7% from the previous year [17][18]. - Shake Shack's consensus EPS estimate has been revised up by 1.6% over the last 30 days, but it also has an Earnings ESP of -4.9% and a Zacks Rank of 4, making it difficult to predict a beat on the consensus EPS estimate [19].