Recent News
On September 26, CAVA announced a downtown Detroit restaurant opening as part of continued market entry in Michigan. Earlier in September the company opened a location in Shelton, Connecticut, joining a series of new restaurants launched across 2025. Multiple openings in Pittsburgh and Indianapolis occurred in August and early August, and the company released brand tie-ins and merchandising initiatives in early August. These items emphasize unit growth and retail/brand activity rather than changes to fiscal guidance or capital structure.
Technical Analysis
ADX registers at 38.39, indicating a strong trend; directional indicators show DI- at 28.66 with a dip-and-reversal (bearish signal) while DI+ sits at 13.48 with a dip-and-reversal (bullish signal). The combination of a high ADX with both directional lines active implies a strong directional contest that currently favors negative directional pressure.
MACD reads -$2.74 with the MACD line above the signal line (-$3.26), and the MACD trend shows increasing momentum — the MACD crossing above its signal line constitutes a bullish momentum shift even while the oscillator remains negative. That suggests momentum attempting a recovery from prior weakness rather than an established bullish run.
MRO stands at -34.36, which indicates price sitting materially below the regression target and therefore a statistical tendency for upward pressure toward that target; the magnitude signals a noticeable mean-reversion potential.
RSI at 38.61 with a peak-and-reversal pattern points to recent selling pressure and stalled momentum; the reading sits above classical oversold thresholds but signals limited buying conviction.
Price sits at $62.61 below the 20-day average ($63.97), 50-day average ($74.07) and 200-day average ($92.71), with the 12-day EMA decreasing; Ichimoku Tenkan ($64.13) and Kijun ($65.67) both sit above current price, and the super trend upper band registers at $67.66. These relationships frame near-term resistance between roughly $64–$68 while exposing the stock to continued downside unless price recaptures shorter-term averages. Bollinger band positioning places price close to the lower band, increasing the odds of a technical bounce back toward the mid-range if volatility compresses.
Fundamental Analysis
Q2 results delivered adjusted EPS of $0.16 versus an estimate of $0.14, producing an EPS surprise of 14.29%. Total revenue reported at $280,615,000; commentary and filings released in August showed a slowdown in same-restaurant sales growth and an updated same-restaurant sales outlook, which corresponded with a sizable intraday market reaction.
Operating performance shows EBIT of $25,815,000 and EBITDA of $42,630,000, producing an EBIT margin of 9.20%. That EBIT margin sits below the industry peer mean (approximately 14.46%) and below the industry peer median (approximately 12.67%), placing operating profitability on the lower side of peer comparatives. Capital expenditures totaled -$41,119,000 for the period; operating cash flow reached $60,318,000 with free cash flow of $19,199,000 and free cash flow yield near 0.21%, indicating limited cash yield relative to market value.
Top-line dynamics show YoY revenue growth of -15.43% and QoQ revenue growth of -133.61%, while earnings growth YoY registered -173.04% and QoQ -54.35%. Receivables and inventory turns run high (receivables turnover 37.66; inventory turnover 26.97), supporting strong working-capital turns; current ratio and quick ratio sit at 2.72 and 2.67 respectively, providing ample near-term liquidity. Debt metrics include total debt of $433,837,000 with debt-to-equity of 0.58 and debt-to-EBITDA of 10.18, underscoring a leverage profile that compresses coverage relative to operating cash.
Price multiples look extended: P/E about 541.6x, price-to-sales near 33.02x, and price-to-book roughly 12.34x—WMDST values the stock as over-valued. Enterprise value tallies $9,313,907,027 with an enterprise multiple of 218.48, reinforcing an elevated market valuation relative to cash-flow generation and operating margins. Use of industry peer mean and median comparisons appears where provided; no peer-sector valuation comparison beyond those metrics applies.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-12 |
| NEXT REPORT DATE: | 2025-11-19 |
| CASH FLOW | Begin Period Cash Flow | $ 289.4 M |
| Operating Cash Flow | $ 60.3 M | |
| Capital Expenditures | $ -41.12 M | |
| Change In Working Capital | $ 15.1 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 822.0 K | |
| End Period Cash Flow | $ 290.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 280.6 M | |
| Forward Revenue | $ 55.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 205.9 M | |
| Depreciation | $ 16.8 M | |
| Depreciation and Amortization | $ 16.8 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 254.8 M | |
| PROFITABILITY | ||
| Gross Profit | $ 74.7 M | |
| EBITDA | $ 42.6 M | |
| EBIT | $ 25.8 M | |
| Operating Income | $ 25.8 M | |
| Interest Income | $ 3.6 M | |
| Interest Expense | — | |
| Net Interest Income | $ 3.6 M | |
| Income Before Tax | $ 23.7 M | |
| Tax Provision | $ 5.3 M | |
| Tax Rate | 22.5 % | |
| Net Income | $ 18.4 M | |
| Net Income From Continuing Operations | $ 18.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.14 | |
| EPS Actual | $ 0.16 | |
| EPS Difference | $ 0.02 | |
| EPS Surprise | 14.286 % | |
| Forward EPS | $ 0.12 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.3 B | |
| Intangible Assets | $ 3.5 M | |
| Net Tangible Assets | $ 747.2 M | |
| Total Current Assets | $ 418.5 M | |
| Cash and Short-Term Investments | $ 385.8 M | |
| Cash | $ 290.2 M | |
| Net Receivables | $ 7.6 M | |
| Inventory | $ 8.0 M | |
| Long-Term Investments | $ 12.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 33.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 153.7 M | |
| Net Debt | — | |
| Total Debt | $ 433.8 M | |
| Total Liabilities | $ 540.9 M | |
| EQUITY | ||
| Total Equity | $ 750.7 M | |
| Retained Earnings | $ -273.27 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.47 | |
| Shares Outstanding | 115.952 M | |
| Revenue Per-Share | $ 2.42 | |
| VALUATION | Market Capitalization | $ 9.3 B |
| Enterprise Value | $ 9.3 B | |
| Enterprise Multiple | 218.482 | |
| Enterprise Multiple QoQ | -15.855 % | |
| Enterprise Multiple YoY | -27.696 % | |
| Enterprise Multiple IPRWA | CAVA: 218.482 high: 196.872 mean: 125.868 median: 112.669 low: -54.215 |
|
| EV/R | 33.191 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.721 | |
| Asset To Liability | 2.388 | |
| Debt To Capital | 0.366 | |
| Debt To Assets | 0.336 | |
| Debt To Assets QoQ | 0.021 % | |
| Debt To Assets YoY | 325.057 % | |
| Debt To Assets IPRWA | high: 1.328 mean: 0.429 median: 0.349 CAVA: 0.336 low: 0.145 |
|
| Debt To Equity | 0.578 | |
| Debt To Equity QoQ | 1.738 % | |
| Debt To Equity YoY | 322.627 % | |
| Debt To Equity IPRWA | high: 5.238 median: 1.542 mean: 0.653 CAVA: 0.578 low: -1.9 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 12.343 | |
| Price To Book QoQ | -18.783 % | |
| Price To Book YoY | -26.669 % | |
| Price To Book IPRWA | CAVA: 12.343 high: 7.503 mean: 4.349 median: 3.493 low: -1.247 |
|
| Price To Earnings (P/E) | 541.61 | |
| Price To Earnings QoQ | 24.266 % | |
| Price To Earnings YoY | 7.379 % | |
| Price To Earnings IPRWA | CAVA: 541.61 high: 339.298 median: 246.702 mean: 216.733 low: -186.596 |
|
| PE/G Ratio | -17.796 | |
| Price To Sales (P/S) | 33.02 | |
| Price To Sales QoQ | -0.716 % | |
| Price To Sales YoY | -12.516 % | |
| Price To Sales IPRWA | CAVA: 33.02 high: 20.084 median: 20.084 mean: 12.455 low: 0.25 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 685.347 | |
| Forward PE/G | -22.518 | |
| Forward P/S | 167.382 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1.173 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.223 | |
| Asset Turnover Ratio QoQ | -19.527 % | |
| Asset Turnover Ratio YoY | -13.574 % | |
| Asset Turnover Ratio IPRWA | high: 0.466 median: 0.248 CAVA: 0.223 mean: 0.219 low: 0.119 |
|
| Receivables Turnover | 37.656 | |
| Receivables Turnover Ratio QoQ | -31.536 % | |
| Receivables Turnover Ratio YoY | -19.877 % | |
| Receivables Turnover Ratio IPRWA | high: 149.802 CAVA: 37.656 mean: 21.501 median: 11.024 low: 3.605 |
|
| Inventory Turnover | 26.965 | |
| Inventory Turnover Ratio QoQ | -19.027 % | |
| Inventory Turnover Ratio YoY | -12.214 % | |
| Inventory Turnover Ratio IPRWA | high: 66.413 CAVA: 26.965 mean: 16.127 median: 7.335 low: 0.888 |
|
| Days Sales Outstanding (DSO) | 2.423 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -5.739 | |
| Cash Conversion Cycle Days QoQ | -26.891 % | |
| Cash Conversion Cycle Days YoY | 36.395 % | |
| Cash Conversion Cycle Days IPRWA | high: 9.181 median: 5.409 mean: 3.039 CAVA: -5.739 low: -18.761 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.06 | |
| CapEx To Revenue | -0.147 | |
| CapEx To Depreciation | -2.445 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 750.7 M | |
| Net Invested Capital | $ 750.7 M | |
| Invested Capital | $ 750.7 M | |
| Net Tangible Assets | $ 747.2 M | |
| Net Working Capital | $ 264.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 2.51 | |
| Current Ratio | 2.723 | |
| Current Ratio QoQ | -9.278 % | |
| Current Ratio YoY | -13.899 % | |
| Current Ratio IPRWA | high: 4.669 CAVA: 2.723 mean: 2.391 median: 1.637 low: 0.258 |
|
| Quick Ratio | 2.671 | |
| Quick Ratio QoQ | -9.374 % | |
| Quick Ratio YoY | -14.004 % | |
| Quick Ratio IPRWA | CAVA: 2.671 high: 1.799 median: 1.423 mean: 1.128 low: 0.155 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 10.177 | |
| Cost Of Debt | — | |
| Interest Coverage Ratio | — | |
| Interest Coverage Ratio QoQ | — | |
| Interest Coverage Ratio YoY | — | |
| Interest Coverage Ratio IPRWA | — | |
| Operating Cash Flow Ratio | 0.272 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 10.975 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.151 % | |
| Revenue Growth | -15.433 % | |
| Revenue Growth QoQ | -133.605 % | |
| Revenue Growth YoY | — | |
| Revenue Growth IPRWA | high: 19.65 % mean: 8.616 % median: 5.876 % low: -2.737 % CAVA: -15.433 % |
|
| Earnings Growth | -30.435 % | |
| Earnings Growth QoQ | -54.348 % | |
| Earnings Growth YoY | -173.043 % | |
| Earnings Growth IPRWA | high: 85.714 % median: 63.636 % mean: 39.442 % CAVA: -30.435 % low: -40.0 % |
|
| MARGINS | ||
| Gross Margin | 26.613 % | |
| Gross Margin QoQ | 5.053 % | |
| Gross Margin YoY | 5.452 % | |
| Gross Margin IPRWA | high: 57.761 % median: 39.607 % mean: 37.437 % CAVA: 26.613 % low: -11.149 % |
|
| EBIT Margin | 9.199 % | |
| EBIT Margin QoQ | 39.654 % | |
| EBIT Margin YoY | 67.743 % | |
| EBIT Margin IPRWA | high: 25.947 % mean: 14.462 % median: 12.668 % CAVA: 9.199 % low: -30.075 % |
|
| Return On Sales (ROS) | 9.199 % | |
| Return On Sales QoQ | 39.654 % | |
| Return On Sales YoY | 67.743 % | |
| Return On Sales IPRWA | high: 25.947 % mean: 14.791 % median: 13.145 % CAVA: 9.199 % low: -10.902 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 19.2 M | |
| Free Cash Flow Yield | 0.207 % | |
| Free Cash Flow Yield QoQ | 762.5 % | |
| Free Cash Flow Yield YoY | 331.25 % | |
| Free Cash Flow Yield IPRWA | high: 4.389 % median: 0.427 % mean: 0.371 % CAVA: 0.207 % low: -11.081 % |
|
| Free Cash Growth | 610.548 % | |
| Free Cash Growth QoQ | 2080.84 % | |
| Free Cash Growth YoY | — | |
| Free Cash Growth IPRWA | CAVA: 610.548 % high: 576.003 % median: -145.027 % mean: -206.824 % low: -511.746 % |
|
| Free Cash To Net Income | 1.045 | |
| Cash Flow Margin | 14.873 % | |
| Cash Flow To Earnings | 2.272 | |
| VALUE & RETURNS | ||
| Economic Value Added | — | |
| Return On Assets (ROA) | 1.458 % | |
| Return On Assets QoQ | -31.996 % | |
| Return On Assets YoY | 4.741 % | |
| Return On Assets IPRWA | high: 6.018 % mean: 1.986 % median: 1.75 % CAVA: 1.458 % low: -6.328 % |
|
| Return On Capital Employed (ROCE) | 2.269 % | |
| Return On Equity (ROE) | 0.024 | |
| Return On Equity QoQ | -30.876 % | |
| Return On Equity YoY | 1.577 % | |
| Return On Equity IPRWA | high: 0.137 median: 0.04 CAVA: 0.024 mean: 0.018 low: -0.257 |
|
| DuPont ROE | 2.488 % | |
| Return On Invested Capital (ROIC) | 2.665 % | |
| Return On Invested Capital QoQ | 12.069 % | |
| Return On Invested Capital YoY | -147.709 % | |
| Return On Invested Capital IPRWA | high: 8.642 % median: 5.572 % mean: 4.861 % CAVA: 2.665 % low: -15.429 % |
|