CAVA Group Q3 revenue slightly misses estimates
Overview
Mediterranean fast-casual chain's Q3 revenue grew, slightly missing analyst expectations
Net income for Q3 declined year-over-year, mainly due to higher depreciation and compensation
Outlook
CAVA raises 2026 same-restaurant sales growth outlook to 6.0%-7.0% from 4.5%-6.5%
Company now expects 76 to 78 net new restaurant openings in 2026, up from 75 to 77
CAVA sees 2026 adjusted EBITDA between $184 mln and $189 mln
Result Drivers
NEW RESTAURANT OPENINGS - Co said revenue growth was primarily driven by new restaurant openings exceeding performance expectations
MENU PRICING AND MIX - Same restaurant sales growth was attributed to higher menu prices, product mix, and slightly positive guest traffic
PRODUCE SAFETY CONCERNS - Same restaurant sales were negatively impacted by Cyclospora and concerns over fresh produce consumption
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $356.44 mln | $358.54 mln (22 Analysts) |
Q3 EPS | $0.11 | ||
Q3 Net Income | $13.20 mln | ||
Q3 Income from Operations | $15.001 mln | ||
Q3 Pretax Profit | $18.68 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for CAVA Group, Inc. is $82.00, about 36% above its November 3 closing price of $60.31
The stock recently traded at 85 times the next 12-month earnings vs. a P/E of 98 three months ago
Reuters Recommended Reads
Nov 3 - Yum Brands tops Q3 adjusted EPS estimates
Nov 4 - McDonald's Q3 revenue misses estimates on weaker US comparable sales
Nov 3 - Marzetti Q1 sales slightly miss, profit falls on cyclospora outbreak, higher costs
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)