Cava Shares Sink as Company Cuts Sales Outlook on Weak Same-Store Growth

Written by Emily J. Thompson, Senior Investment Analyst

CAVA+2.48%

Source: Yahoo Finance

Updated: Aug 13 2025

5mins

Source: Yahoo Finance

Sales Forecast Adjustment: Cava reduced its full-year same-store sales growth forecast to 4%-6% from 6%-8% after reporting weaker-than-expected second-quarter results, leading to a more than 20% drop in shares during after-hours trading.
Financial Performance Highlights: The company reported revenue of $280.6 million, below Wall Street's estimate, with net income slightly down year-over-year but still exceeding analyst projections; same-store sales growth was only 2.1%, significantly lower than the expected 6.1%.

CAVA.N

$63.160-20.353%Past 6 months

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Analyst Views on CAVA

Wall Street analysts forecast CAVA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAVA is 93.67 USD with a low forecast of 74.00 USD and a high forecast of 125.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

16 Analyst Rating

11 Buy

5 Hold

0 Sell

Moderate Buy

Current: 61.630

Low

74.00

Averages

93.67

High

125.00

Current: 61.630

Low

74.00

Averages

93.67

High

125.00

Argus

Buy

downgrade

$110 -> $76

2025-09-02

Reason

Argus

Price Target

$110 -> $76

2025-09-02

downgrade

Buy

Reason

Argus lowered the firm's price target on Cava Group to $76 from $110 and keeps a Buy rating on the shares. Cava lowered its same-store sales growth estimates for the year, which the firm sees as "a more realistic calibration," says the analyst, who believes bad news is priced in with shares down 40% year-to-date.

UBS

Neutral

downgrade

$96 -> $75

2025-08-13

Reason

UBS

Price Target

$96 -> $75

2025-08-13

downgrade

Neutral

Reason

UBS lowered the firm's price target on Cava Group to $75 from $96 and keeps a Neutral rating on the shares. Cava's Q2 earnings report highlighted softer same-store sales momentum driven by the lapping of steak in 2024 and the impact from the performance of newer stores in Year 2 entering the comp base, the analyst tells investors in a research note. While strong Year 1 performance from new stores is encouraging, the negative drag on comps could pressure valuation and shares at least near-term, the firm says.

Barclays

Jeffrey Bernstein

Equal Weight

downgrade

$91 -> $74

2025-08-13

Reason

Barclays

Jeffrey Bernstein

Price Target

$91 -> $74

2025-08-13

downgrade

Equal Weight

Reason

Barclays analyst Jeffrey Bernstein lowered the firm's price target on Cava Group to $74 from $91 and keeps an Equal Weight rating on the shares. The company's Q2 disappointed on comp sales but still beat on margin and EBITDA, the analyst tells investors in a research note. The firm says that while Cava's 2025 outlook was lowered for comp sales, it still calls for an acceleration on a two-year stack.

KeyBanc

Christopher Carril

Overweight

downgrade

$100 -> $85

2025-08-13

Reason

KeyBanc

Christopher Carril

Price Target

$100 -> $85

2025-08-13

downgrade

Overweight

Reason

KeyBanc analyst Christopher Carril lowered the firm's price target on Cava Group to $85 from $100 and keeps an Overweight rating on the shares. The firm notes the company's Q2 results saw same-store sales trends miss consensus and likely fell short of buy-side expectations. That said, EPS/EBITDA exceeded Street estimates as store-level margins fell in line with consensus and G&A largely offset most of the revenue shortfall. Same-store sales growth improved in July/quarter-to-date, but trends likely remain short of the mid-single-digit range anticipated by the Street in the second half of the year, KeyBanc adds.

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About CAVA

CAVA Group, Inc. is a category-defining Mediterranean fast-casual restaurant brand. The Company’s Mediterranean cuisine unites taste and health, with a menu that features chef-curated and customizable bowls and pitas. Its dips, spreads, and dressings are centrally produced and sold in grocery stores. Its menu offers a range of dietary preferences, from hearty and indulgent to vegan, vegetarian, gluten-free, dairy-free, paleo, keto, and nut-free diets. Its guests can choose a chef-curated meal or a build-your-own-bowl or pita using its 38 ingredients with over 17.4 billion combinations. It has developed a multi-channel experience that consists of in-restaurant dining, digital pick-up, drive-thru pick-up in select restaurants, delivery, catering, and consumer packaged goods offerings, fully supported by its digital infrastructure. It operates two production facilities: one in Maryland and one in Virginia. It operates in approximately 26 states and the District of Columbia.

About the author

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Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.