📊 CAVA Key Takeaways
Investment Thesis
CAVA demonstrates solid revenue growth of 22.4% YoY and maintains healthy liquidity with a 2.65x current ratio and $282.9M cash position. However, profitability deterioration is concerning, with net income declining 51.1% YoY despite revenue expansion, indicating margin compression and operational challenges that require monitoring.
CAVA Strengths
- Strong revenue growth of 22.4% YoY showing market traction and expansion
- Excellent liquidity position with 2.65x current ratio and $282.9M cash reserves
- Zero long-term debt providing financial flexibility and low leverage risk
- Positive operating cash flow of $184.8M supporting operational sustainability
CAVA Risks
- Net income collapsed 51.1% YoY while revenue grew 22.4%, indicating severe margin compression
- Net margin of only 5.4% and operating margin of 4.7% are thin for restaurant retail
- Free cash flow of only $26.1M (2.2% FCF margin) after capital expenditures suggests limited cash generation efficiency
- Capital expenditures of $158.7M consume 86% of operating cash flow, limiting distribution capacity
- ROE of 8.2% and ROA of 4.7% are concerning for a growth-stage company
Key Metrics to Watch
- Operating margin trend and gross margin sustainability amid cost inflation
- Free cash flow generation and capital intensity of new unit expansion
- Same-store sales growth and unit economics to assess organic growth quality
- Net income recovery trajectory and path to normalized profitability
- Capital expenditure efficiency and return on invested capital
CAVA Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.2% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.65x current ratio provides a solid financial cushion.
CAVA Profitability Ratios
CAVA vs Consumer Sector
How CAVA GROUP, INC. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CAVA Balance Sheet & Liquidity
CAVA 5-Year Financial Trend
5-Year Trend Summary: CAVA GROUP, INC.'s revenue has grown significantly by 62% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.21 reflects profitable operations.
CAVA Growth Metrics (YoY)
CAVA Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $243.8M | $14.7M | $0.12 |
| Q2 2025 | $233.5M | $18.4M | $0.16 |
| Q1 2025 | $259.0M | $14.0M | $0.12 |
| Q3 2024 | $175.6M | $6.8M | $0.06 |
| Q2 2024 | $172.9M | $4.4M | $0.17 |
| Q1 2024 | $203.1M | -$2.1M | $0.12 |
| Q3 2023 | $139.3M | $6.8M | $0.06 |
| Q2 2023 | $135.9M | $4.4M | $0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CAVA Capital Allocation
CAVA SEC Filings
Access official SEC EDGAR filings for CAVA GROUP, INC. (CIK: 0001639438)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 6, 2026 | 4 | xslF345X05/wk-form4_1772831244.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772487332.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772487324.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772487316.xml | View → |
| Mar 2, 2026 | 4 | xslF345X05/wk-form4_1772487308.xml | View → |
❓ Frequently Asked Questions about CAVA
What is the AI rating for CAVA?
CAVA GROUP, INC. (CAVA) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CAVA's key strengths?
Strong revenue growth of 22.4% YoY showing market traction and expansion. Excellent liquidity position with 2.65x current ratio and $282.9M cash reserves.
What are the risks of investing in CAVA?
Net income collapsed 51.1% YoY while revenue grew 22.4%, indicating severe margin compression. Net margin of only 5.4% and operating margin of 4.7% are thin for restaurant retail.
What is CAVA's revenue and growth?
CAVA GROUP, INC. reported revenue of $1.2B.
Does CAVA pay dividends?
CAVA GROUP, INC. does not currently pay dividends.
Where can I find CAVA SEC filings?
Official SEC filings for CAVA GROUP, INC. (CIK: 0001639438) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CAVA's EPS?
CAVA GROUP, INC. has a diluted EPS of $0.54.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.