CAVA Group Q2 revenue grows 20.3% but misses estimates

CAVA

12/08/2025 21:23

Overview

CAVA fiscal Q2 revenue grows 20.3% yr/yr but misses analyst expectations

Company opened 16 net new restaurants, total now 398

CAVA net income for Q2 was $18.4 mln, slightly down from last year

Outlook

CAVA Group forecasts same restaurant sales growth of 4.0% to 6.0%

Company maintains restaurant-level profit margin guidance at 24.8% to 25.2%

Result Drivers

NEW RESTAURANTS - Revenue growth driven by 75 net new restaurant openings since Q2 2024, exceeding Co's performance expectations

MENU PRICING - Same restaurant sales growth of 2.1% attributed to menu price adjustments and product mix

COST PRESSURES - Profit margin slightly declined due to higher input costs and wage investments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$280.62 mln
$285.60 mln (14 Analysts)
Q2 Net Income
$18.37 mln
Q2 Income from Operations
$19.64 mln
Q2 Pretax Profit
$23.70 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "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 $111.00, about 25.9% above its August 11 closing price of $82.30

The stock recently traded at 126 times the next 12-month earnings vs. a P/E of 157 three months ago

Press Release: ID:nBw3ysSxWa

(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.)