Key Stats for Cava Stock
- Pre-market price change for Cava stock: 7%
- $CAVA Share Price as of May. 19: $78
- 52-Week High: $99
- $CAVA Stock Price Target: $90
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What Happened?
Cava (CAVA) stock jumped more than 7% in after-hours trading on Tuesday after the Mediterranean fast-casual chain posted a strong Q1 and raised its full-year outlook across the board.
- Revenue climbed 32.2% year-over-year to $438.3 million, beating the analyst consensus of $418.2 million.
- Adjusted EPS came in at $0.20, ahead of the $0.17 estimate.
- The standout number was same-restaurant sales growth of 9.7%.
- That was driven primarily by traffic — actual guest visits were up 6.8%.
- In a restaurant industry where most chains are struggling to keep customers coming in, that kind of traffic growth is rare.
- CAVA opened 20 net new restaurants in the quarter, ending with 459 total locations — a 20.2% increase year-over-year.
- New markets included Cincinnati, St. Louis, and Columbus.
- New restaurant productivity came in above 100%, meaning new locations are outperforming expectations from day one.
CEO Brett Schulman called out the broader macro uncertainty but said the business hasn’t seen any deterioration in consumer behavior.
Even lower-income customers were showing up more often — a sign that CAVA’s value proposition is resonating across income levels.
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What the Market Is Telling Us About Cava Stock
The guidance raise is what really drove Cava stock higher.
- Full-year same-restaurant sales are now expected between 4.5% and 6.5%, up from 3% to 5% previously.
- Adjusted EBITDA guidance increased to $181 million to $191 million.
- Net new restaurant openings were nudged up to 75 to 77 locations.
What makes this particularly impressive is that CAVA is lapping strong prior-year comparisons and still delivering. The company hasn’t relied on discounts or promotions to drive traffic — it has kept prices well below inflation while competitors have been cutting deals.
Management noted CAVA has been priced at only slightly more than half of cumulative CPI since late 2019.
Restaurant-level profit margin held steady at 25.1%. The company is launching salmon nationally in Q2, which will create a modest headwind to food costs, but management priced it to be profit-neutral on a dollar basis.
With $403 million in cash, zero debt, and presence only in 29 states, Cava stock has a long runway ahead. For investors looking at high-quality consumer growth stories, Cava stock is one of the cleaner names in the restaurant space right now.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
