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CAVA Group Q3 revenue slightly misses estimates

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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