Cava to publish Q1 gains: Time to buy, sell or keep the stock? – May 14, 2025

Cava Group, Inc. ((Cava quick quoteCava – – Free Report) is to publish its results in the first quarter of 2025 on May 15, 2025.

The Zack’s consensus estimate for Cava’s yield per share in the first quarter (EPS) is bound to 14 cents, which indicates growth of 16.7% compared to 12 cents in the previous year. The consensus mark for the profits has remained unchanged in the past 60 days.

CAVA yield estimate trend

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The consensus for sales in the first quarter in the first quarter is USD 330.6 million, which indicates growth of the reported sales of the previous year.

The Cava Group has an impressive story of the yield surprise. The result of Cava exceeded the consensus estimate of Zacks in three of the subsequent four quarters and once missed, with the average surprise 62.6%. (Find the latest EPS estimates and surprises for the Zacks profit calendar.)

CAVA entrance to the history of history

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Q1 income whisper for Cava shares

This time our proven model does not conclusively predict a profit for the Cava Group. A share must have a positive profit and an ESP and a Zacks rank 1 (strong purchase), 2 (purchase) or 3 (hold) to exceed the profits. But that’s not the case here. You can uncover the best stocks to buy or sell before you are registered with our profit -SP filter.

The Cava Group has a result of -2.00% and a Zacks rank 4 (Sell).

You can see The full list of today’s Zacks #1 rang stocks here.

Factors that probably influence the Q1 results of CAVA that are likely to influence

The performance of the CAVA Group in the first quarter is expected to benefit from a strong dynamic of traffic growth, strategic expansion efforts and the continuing improvements in digital and restaurants. With a differentiated Mediterranean branded range and a disciplined execution, the company seems to be well positioned in order to maintain its growth curia in the growth district granted to the trendy quarter.

Management assumes that sales growth of the same restaurant will be the highest in the first quarter before it moderates in the further course of the year, which corresponds to the overall year of the year of 6 to 8%. A combination of increased traffic, modest prices and increasing customer loyalty through digital and loyal channels should have supported its performance in the to the quarter registered to the trendy quarter.

Cava’s loyalty program, an important strategic pillar, is likely to have played a sensible role in increasing engagement and frequency in the quarter. Since its reintroduction, the program has remarkable increases in sales participation, especially for users with a lower frequency, and enabled a targeted influence of behavior through point -based reward returns. The success of incentives with a limited period of time, which are associated with new menu items such as the garlic-ranch-pita chips, underlines the potential of this platform to support future innovations and to advance repeat visits. In addition, it is expected that the continued development of the program through steps and non-food advantages is expected to further deepen brand affinity and strengthen consumer loyalty.

The increased focus on menuinnovation is good for the company. Seasonal objects and premium offers such as spicy lamb balls and avocado continue to create excitement and increase the review on average. These starts are often supported by targeted marketing campaigns and partnerships with like-minded influencers, creating organic sums and driving tests. The company’s approach to innovation-anchored by operational discipline and a structured stage process village have supported its performance in the to that to the to the quarter created.

The performance in the first quarter of Cava is likely to be a few headwinds that result from increased input costs and ongoing strategic investments. The persistent effects of higher food and packaging costs, in particular due to the inclusion of steak as a core menu, could have put pressure on the edges at the restaurant level. In addition, work -related costs are likely to be increased, which reflects incremental wage adjustments and compliance with legislative changes such as California from 1228.

CAVA share price and evaluation

The CAVA Group shares have lost 23.9% in the past three months, which affects the Zacks retail – which influenced 7.1% of the restaurants of the restaurants in the industry below average. The share also remained the decline of S&P 500 of 4.3%. The company’s colleagues, including Chipotle Mexican Grill, Inc. ((Cmg fast quoteCmg – – Free report), Brinker International, Inc. ((Eat fast quoteEAT – – Free report) and Dutch Bros Inc. ((Bros fast quoteBros – – Free report) have 11.2%, 4.3%or. Lost 14.3%.

Cava three -month price performance

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From a evaluation perspective, the Cava share is currently acting with a bonus. CAVA is currently with a starting value of 12 months Price-to-Sales (P/S) Beurificum of 8.96x, well above the industry average of 4.07x. Other industry actors such as chipotle, brinker and Dutch bros have P/S ratios of 5.32x, 1.24x or 6.32x.

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Investment considerations for Cava shares

The CAVA Group focuses on using the growing consumer interest in health -oriented food and Mediterranean cuisine in order to promote long -term expansion and at the same time maintain a scalable operating model. The company continues to invest in restaurant growth, digital skills and culinary innovations in order to improve the gaster experience and to deepen the brand loyalty. The differentiated promise of value from CAVA-the combination of premium ingredients, multichannel comfort and technically capable loyalty platform supports the robust customer loyalty and strong traffic trends. Strategic market entries in new geographies in combination with an efficient selection of the locations and the increasing average unit volumes are expected to support the continued sales and margin expansion. With a disciplined cost structure and an extension of the national footprint, Cava is well positioned to deliver improved cash flows by 2025 and beyond.

However, the company faces challenges due to rising food and packaging costs, especially at Premium menu commitments such as steak. Persistent investments in wages and employment relationships, including compliance with the mandates at the state level such as California from 1228, could continue to weigh up profitability. In addition, increased general and administrative editions in connection with infrastructure, technology and talent can limit the operational lever with the corporate scales. A shift in consumers’ consumer behavior or a slower than expected acceptance in newer markets could affect the performance of traffic and performance at the unit level.

How do I play Cava Stock now?

While the CAVA Group continues to exercise strong traffic trends and strategic expansions, several short -term headwinds are concerned about the risk profile of the share. The pressure on the margins, which results from increased food and labor costs, together with ongoing investments in infrastructure and technology, can restrict profitability in the upcoming quarters. In addition, the extensive evaluation of the share and trade is limited to more than twice as high that the industry average on a price-year basis is average-the potential upward trend of current levels.

In view of the lack of profits about visibility in this quarter, the continued cost pressure and an extended assessment, we believe that the current setup does not favor a fresh purchase. Investors who keep the shares can consider, book profits or reduce commitment, while new investors are recommended to initiate positions in this phase. Until a greater clarity of the edge of the edge and a more attractive evaluation occurs, Cava shares seems to be susceptible to further disadvantages.