CAVA

US restaurant and food distribution companies likely saw a mixed second quarter, with largely stable

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at modern fast food stocks, starting with CAVA (NYSE:CAVA). Modern fast food is a relatively newer category representing a middle ground between traditional fast food and sit-down restaurants. These establishments feature an expanded menu selection priced above traditional fast food options, often incorporating fresher and cleaner ingredients to serve customers prioritizing quality. These eateries are capitalizing on the perception that your drive-through burger and fries joint is detrimental to your health because of inferior ingredients. The 6 modern fast food stocks we track reported a mixed Q1. As a group, revenues were in line with analysts’ consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.3% since the latest earnings results. Starting from a single Washington, D.C. location, CAVA (NYSE:CAVA) operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes. CAVA reported revenues of $438.3 million, up 32.1% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA and same-store sales estimates. “Amid today's broader macroeconomic environment and geopolitical uncertainty, our first quarter results reflect our position as a clear industry leader and our ability to meet the moment for the modern consumer," said Brett Schulman, Co-Founder and CEO. CAVA scored the biggest analyst estimate beat and fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 7.5% since reporting and currently trades at $72.27. Is now the time to buy CAVA? Access our full analysis of the earnings results here, it’s free. Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes. Chipotle reported revenues of $3.09 billion,...

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. CAVA Group (CAVA) has recently seen its stock decline and lag the broader market and its sector, as investors turn attention to the company’s upcoming earnings report and what it may imply for future performance. See our latest analysis for CAVA Group. At a share price of $69.74, CAVA Group’s short term momentum has cooled, with the share price down 3.02% over one day and 11.14% over seven days. Its year to date share price return of 15.18% contrasts with a 1 year total shareholder return that is down 20.36% and a 3 year total shareholder return of 53.44%. This points to earlier strength that has faded more recently as the market reassesses growth expectations and risk around upcoming earnings. If this recent pullback has you thinking about where else growth stories could emerge, it may be worth scanning 19 top founder-led companies After this pullback, CAVA Group trades at a sizeable discount to the average analyst price target of $92.88. Is the market rightly cautious ahead of earnings, or has it moved too far away from fair value estimates? Against the last close of $69.74, the most followed narrative for CAVA Group points to a fair value of $65.49, suggesting the current valuation sits above that modeled level while still incorporating solid growth and margin gains. Read the complete narrative. Want to see what underpins that kind of price tag for CAVA Group? The narrative focuses on compounding revenue, rising margins and an earnings multiple that is typically associated with category standouts. Curious which specific growth, profitability and valuation assumptions would need to hold for that fair value to be supported over time? Result: Fair Value of $65.49 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, if CAVA Group successfully maintains strong new unit economics and benefits from sustained demand for Mediterranean fast casual, this bearish fair value narrative could be challenged. Find out about the key risks to this CAVA Group narrative. With CAVA Group appearing priced above this bearish fair value while still presenting both concerns and positives, it may be useful to review the underlying data yourself and move quickly to form your own view by weighing the 2 key rewards and 2 i...

Darden Restaurants, Inc. DRI is scheduled to report fourth-quarter fiscal 2026 results on June 25, before the opening bell.In the last reported quarter, earnings met the Zacks Consensus Estimate, while revenues beat the same by 0.5%. DRI’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, missed on two occasions, and met on one occasion, with an average surprise of negative 0.3%. The Zacks Consensus Estimate for fiscal fourth-quarter earnings per share (EPS) is $3.63, up 21.8% from $2.98 in the year-ago quarter. Darden Restaurants, Inc. price-eps-surprise | Darden Restaurants, Inc. Quote For revenues, the consensus estimate is $3.73 billion. The projection implies a 14.2% rise from the year-ago quarter’s reported figure. Let us take a look at how things might have shaped up in the quarter to be reported. RevenuesDarden’s fiscal fourth-quarter performance is likely to have benefited from continued same-restaurant sales momentum across its portfolio, led by Olive Garden and LongHorn Steakhouse. Sales trends remained strong through the first three weeks of March, and management projected same-restaurant sales growth of 3.5%-5% for the quarter under review. Olive Garden’s initiatives are expected to have supported guest traffic and sales growth in the to-be-reported quarter. The recently expanded lighter-portion menu, which added seven dishes priced below $15, has been generating higher guest frequency, stronger value scores and improved portion-size satisfaction ratings. Management also highlighted positive guest response to the Buy One, Take One promotion, which was extended by an additional week this year and supported with increased media spending. LongHorn Steakhouse is likely to have remained a major growth driver. The brand posted 7.2% same-restaurant sales growth in the fiscal third quarter, aided by strong traffic gains, consistent food quality and favorable consumer value perception. Management emphasized that LongHorn continues to benefit from operational excellence and strong guest loyalty, trends that likely continued into the fiscal fourth quarter.Fine Dining is also expected to have remained strong, supported by robust private dining demand at The Capital Grille and Eddie V’s, as well as continued traction from Ruth’s Chris Steak House’s fixed-price menu. Additionally, delivery and catering initiatives, particularly...

It has been about a month since the last earnings report for Cava Group (CAVA). Shares have added about 9.3% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cava due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for CAVA Group, Inc. before we dive into how investors and analysts have reacted as of late. CAVA delivered first-quarter fiscal 2026 earnings of $0.20 per share, down 9.1% from the year-ago quarter, but beat the Zacks Consensus Estimate of $0.17 by 17.65%. Total revenues rose 32.1% year over year to $0.44 billion and topped the consensus mark of $0.42 billion by 4.49%.Results reflected a combination of unit growth and healthy demand trends. Same Restaurant Sales increased 9.7% in the quarter, including Guest Traffic growth of 6.8%, supporting a step-up in restaurant volumes. On the top line, CAVA revenues grew 32.2% year over year to $434.4 million, primarily reflecting contributions from 92 Net New CAVA Restaurant Openings during or subsequent to the first quarter of fiscal 2025. The company ended the quarter with 459 CAVA restaurants, up from 382 a year earlier. Management also highlighted that new restaurant openings continue to exceed expectations in both top-line and margin performance, with first-quarter new restaurant productivity trending above 100%. That early performance can support continued reinvestment in new markets as the chain scales. CAVA’s restaurant-level profit margin was 25.1% in the first quarter, flat year over year, even as the business absorbed incremental wage investments and a higher mix of third-party delivery. The company said leverage from higher sales helped offset those pressures, keeping profitability at the restaurant level stable. Cost structure details underscore that balance. Food, beverage and packaging costs were 29.1% of CAVA revenues, down 20 basis points versus the prior-year quarter, largely due to a favorable mix. Labor and related costs were 25.7% of revenues, approximately flat year over year, as sales leverage was offset by a 2% investment in team member wages, including the expansion of an Assistant General Manager role. CAVA paired growth with improved cash generation. Net cash provided by ope...

In fast-casual restaurants right now, there is one number every analyst is hunting for, and almost nobody is producing it. That number is positive guest traffic. Sweetgreen (SG) posted an 11.2% traffic decline in the first quarter of 2026, per its first-quarter 2026 earnings release. Chipotle (CMG) clawed its way back to just 0.6% traffic growth after four straight quarters of declines, Yahoo Finance reports. Starbucks (SBUX) only recently returned to traffic growth after a brutal stretch, per Restaurant Dive. Then there is CAVA Group (CAVA), which just reported 6.8% guest traffic growth and made everyone else look slow. That divergence is exactly what triggered the latest analyst move. Argus Research analyst Christine Dooley upgraded CAVA from Hold to Buy on May 21, 2026, setting a price target of $92, Investing.com reports. The change in stance matters because Argus had been on the sidelines for months while CAVA worked through a sharp pullback from its 2024 highs. Dooley flagged improving restaurant traffic as the key driver of the upgrade. The firm also pointed to on-track new restaurant openings, strong unit-level economics, and a bullish technical pattern of higher highs and higher lows. That call landed on top of an already heavy week of analyst revisions. Other analysts joining the lift: Robert W. Baird raised its target to $98 from $88, per TipRanks Telsey Advisory moved to $95 from $92 Stifel, Morgan Stanley, Mizuho, TD Cowen, and Guggenheim all raised targets after the quarter The fast-casual category has been quietly cracking. Most major chains are either declining or barely flat on traffic, according to Restaurant Dive's same-store sales tracker. Placer.ai's head of analytical research, R.J. Hottovy, told Restaurant Dive that value grocers like Aldi and Trader Joe's are now stealing fast-casual visits, with consumers questioning the value of a $16 bowl eaten at a counter. CAVA is the clear exception. Related: Cava is betting millions on restaurant role most chains overlook In its first-quarter 2026 earnings release, CAVA reported: Revenue up 32.2% to $434.4 million. Same-restaurant sales up 9.7%, driven by 6.8% traffic growth. Restaurant-level profit margin of 25.1% Adjusted EBITDA up 37.6% to $61.7 million. 20 net new restaurants, bringing the total to 459. Source: CAVA Group First Quarter 2026 Report "Amid today's broader macroeconomic environ...

CAVA reported a positive first quarter, exceeding Wall Street’s expectations for both revenue and adjusted earnings. Management attributed the strong results primarily to higher guest traffic, the success of new restaurant openings, and disciplined menu innovation such as the return of the roasted white sweet potato. CEO Brett Schulman highlighted the company’s focus on “making Mediterranean cuisine accessible to communities across the country,” citing a deliberate strategy to maintain value for guests while resisting industry-wide discounting. The company’s ability to attract both new and returning guests helped drive same-store sales growth, supported by investments in digital engagement and loyalty initiatives. Is now the time to buy CAVA? Find out in our full research report (it’s free). Revenue: $438.3 million vs analyst estimates of $418.4 million (32.1% year-on-year growth, 4.7% beat) Adjusted EPS: $0.20 vs analyst estimates of $0.17 (16.2% beat) Adjusted EBITDA: $61.73 million vs analyst estimates of $57.31 million (14.1% margin, 7.7% beat) EBITDA guidance for the full year is $186 million at the midpoint, in line with analyst expectations Operating Margin: 5.8%, up from 4.7% in the same quarter last year Locations: 470 at quarter end, up from 393 in the same quarter last year Same-Store Sales rose 9.7% year on year (10.8% in the same quarter last year) Market Capitalization: $9.37 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Sara Senatore (BofA): asked about new store productivity and the impact of the salmon launch on food costs. CFO Tricia K. Tolivar explained new stores outperformed across geographies and clarified salmon will run through Q4. David Tarantino (Baird): queried why margin guidance didn’t rise with stronger sales. Tolivar cited higher energy and packaging costs, plus the margin impact of salmon, as limiting factors. Danilo Gargiulo (Bernstein): requested clarity on what could drive results to the high or low end of guidance. CEO Brett Schulman emphasized menu innovation, marketing, and operational execution as key swing factors. Brian Harbour (Morgan Stanley): asked about early re...

Interested in CAVA Group, Inc.? Here are five stocks we like better. CAVA beat earnings and revenue expectations while raising same-store sales and EBITDA guidance. Strong foot traffic growth highlights continued demand from younger, health-conscious consumers. Despite the bullish earnings reaction, valuation concerns and short-term volatility remain key risks. Shares of CAVA Group Inc. (NYSE: CAVA) gained 3% the day after the company delivered a solid beat on the top and bottom lines in its Q1 2026 earnings report. The headline numbers were tasty. Adjusted earnings per share (EPS) of 20 cents beat the expectations of 17 cents. Revenue of $438.27 million beat forecasts for $418.46 million and was up 32.2% year-over-year (YOY). → CAVA Group’s Stock Looks Delicious After Strong Earnings Same-restaurant sales (SRS) were up 9.7%, with foot traffic growth of 6.8%. This is notable at a time when many fast-casual restaurants are reporting declining foot traffic. CAVA also opened 20 net new restaurants during the quarter, which elevated the store count by about 20% YOY. The report comes at a time when investors are searching for direction about the health of the consumer, particularly at lower income levels. → SpaceX IPO: Opportunity? Or the Ultimate Hype Trade? That may not be as relevant for CAVA. While the company doesn’t explicitly market to a single demographic, research shows that CAVA's primary customer segments skew young and affluent, with Millennials and Gen Z driving over 60% of foot traffic and a median household income above $100,000, aligning with the brand's premium fast-casual positioning. However, the report may still present a statement about consumer health. CAVA is a category-defining Mediterranean fast-casual brand that competes in the health and wellness food category. This aligns with millennials and Gen-Z consumers who are looking for healthy options in the fast casual space. → 2 Software Stocks Turning AI Fears Into Fundamental Gains If there was one blemish in the report, it was that the adjusted EPS was about 10% below the 22 cents per share it recorded in Q1 2025. By itself, that’s not very notable. The company maintained its YOY profit margin of 25.1%. However, YOY EPS remains a metric for investors to watch going forward. The company added its first-ever seafood item to the menu. The Pomegranate Glazed Salmon performed in line with test...

Shares of Cava Group (NYSE: CAVA) initially soared after the Mediterranean fast-casual chain reported fiscal first-quarter results Tuesday afternoon, with the stock opening Wednesday's session at nearly $87. The reaction made sense: revenue jumped 32% year over year, same-restaurant sales reaccelerated to 9.7% from just 0.5% in the prior quarter, and management raised its full-year outlook on nearly every line that matters. But the bulk of that early surge has since faded. As of this writing, the stock is trading at about $81 -- only modestly above where it closed before Cava's earnings release. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » So, with the underlying business clearly accelerating again, is the stock still a buy? Net revenue in Cava's fiscal first quarter (the period ended April 19, 2026) rose 32.2% year over year to $434.4 million. The bigger story, however, was same-restaurant sales, which grew 9.7% -- a huge rebound. Just look at how same-restaurant sales played out over the chain's last five quarters: 10.8% in fiscal Q1 2025, 2.1% in fiscal Q2, 1.9% in fiscal Q3, and a mere 0.5% in fiscal Q4 2025. That final reading even included a 1.4% decline in guest traffic. Some investors may have feared Cava was on the verge of posting its first negative comparable sales figure since going public. Instead, the chain blew past expectations. The 9.7% growth was driven by a 6.8% rise in guest traffic, with menu prices and product mix accounting for the remaining 2.9%. It also helps to view that 9.7% comp against what's happening elsewhere in fast casual. Both Sweetgreen and Wingstop recently posted weak comparable sales results. Cava's systemwide average unit volume now stands at $3 million, and the company ended the quarter with 459 restaurants -- a 20.2% year-over-year increase. The chain opened 20 net new locations during the period, including new market entries in St. Louis and Columbus. And CEO and co-founder Brett Schulman said on the fiscal Q1 earnings call that early performance from the 2026 cohort is "tracking in line with or ahead of the strength of our 2025 class, with first quarter new restaurant productivity trending above 100%." And profitability was solid. Restaurant-l...

June Nasdaq 100 E-Mini futures (NQM26) are trending up +0.69% this morning as sentiment improved after Treasury yields retreated from multiyear highs, with attention now turning to an earnings report from chip giant Nvidia. The price of WTI crude fell over -1% on Wednesday after Reuters reported that two Chinese supertankers transited the Strait of Hormuz early in the day and a third, South Korean-flagged vessel, was also exiting the waterway. U.S. President Donald Trump suggested on Tuesday that the war with Iran could end “very quickly,” while also cautioning that the U.S. could restart military strikes. “I hope we don’t have to do the war, but we may have to give them another big hit,” Trump told reporters. Meanwhile, Iran warned on Wednesday that it would expand the war beyond the Middle East if the U.S. attacks again. NVDA Earnings Bull Put Spread has a High Probability of Success This High-Yield REIT Just Hiked Its Dividend By 7.1%. Its Shares Look Compelling Here. Warren Buffett’s Berkshire Hathaway Dumped 16 Stocks in Q1, But the Chevron Sale Was the Largest Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Treasury yields fell across the curve on Wednesday, with the 10-year rate sliding three basis points to 4.64%. With traders still strongly leaning toward a Fed rate hike in December, markets remain highly sensitive to signs of escalation or de-escalation in the Middle East. In yesterday’s trading session, Wall Street’s major indexes closed lower. Most members of the Magnificent Seven stocks slid, with Alphabet (GOOGL) and Amazon.com (AMZN) falling over -2%. Also, travel stocks slumped on worries about higher fuel costs, with Carnival (CCL) sliding over -4% and United Airlines Holdings (UAL) slipping more than -3%. In addition, Akamai Technologies (AKAM) sank over -6% and was the top percentage loser on the S&P 500 after the company announced a $2.6 billion convertible notes offering. On the bullish side, some chip and AI infrastructure stocks advanced, with Marvell Technology (MRVL) climbing more than +4% to lead gainers in the Nasdaq 100 and Sandisk (SNDK) rising over +3%. Economic data released on Tuesday showed that U.S. pending home sales rose +1.4% m/m in April, stronger than expectations of +1.0% m/m. Economists,...

Stock Market Today: The Dow Jones index and the other major indexes posted hefty gains on Wednesday. Small caps outperformed the major indexes.

Cava stock jumped on Wednesday after the fast-growing Mediterranean chain posted stronger-than-expected sales, traffic and earnings growth. Cava Group revenue growth was the fastest since the third quarter of 2024, while same-store sales growth was the best in a year. Restaurant Dive said that Cava's traffic and sales trends "far outpaced its fast casual rivals," noting that Sweetgreen and Wingstop posted some of their worst-ever comparable-store sales gains in Q1.