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CAVA Group (CAVA) Is Up 9.7% After Q3 Expansion And Merch Launch Push - Has The Bull Case Changed?

Simply Wall St · 16h ago
  • CAVA Group recently reported a 20% year-over-year revenue increase, 1.9% same-restaurant sales growth, and 17 new restaurant openings in its fiscal third quarter, while also being placed on an “upside 90-day catalyst watch” tied to the U.S. government’s reopening.
  • Alongside this expansion, CAVA launched “The CAVA Shop” merch store to broaden revenue sources and deepen brand engagement amid ongoing macroeconomic challenges.
  • We’ll now look at how CAVA’s rapid restaurant expansion and brand-building efforts may influence its existing investment narrative.

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CAVA Group Investment Narrative Recap

To own CAVA, you need to believe its fast-casual Mediterranean concept can scale profitably even as same-restaurant sales slow and macro pressures weigh on traffic and margins. The latest quarter’s modest 1.9% same-restaurant sales growth and 20% revenue increase support the expansion story, but analyst target cuts and softer guidance keep execution on new openings and cost control as the key near-term catalyst, while macro-driven demand risk remains the biggest constraint. The “upside 90-day catalyst watch” itself does not materially change that balance.

The launch of “The CAVA Shop” fits neatly beside rapid restaurant growth and digital engagement efforts, giving the brand another way to stay in front of customers while its footprint expands. For investors watching catalysts, this move sits alongside CAVA’s plan to open 68 to 70 new restaurants in 2025 and its technology investments, which together could shape how efficiently the company turns consumer interest into sustainable restaurant-level profits.

Yet behind the expansion story, investors should be aware that persistent inflation and weaker discretionary spending could...

Read the full narrative on CAVA Group (it's free!)

CAVA Group's narrative projects $1.9 billion revenue and $126.2 million earnings by 2028. This requires 20.4% yearly revenue growth and a $14.5 million earnings decrease from $140.7 million today.

Uncover how CAVA Group's forecasts yield a $67.89 fair value, a 25% upside to its current price.

Exploring Other Perspectives

CAVA Community Fair Values as at Dec 2025
CAVA Community Fair Values as at Dec 2025

Simply Wall St Community members have 11 fair value estimates for CAVA that range widely from US$38.45 to US$115.63 per share, showing how far apart individual views can be. When you weigh those opinions against CAVA’s rapid expansion plans and the risk of demand saturation in some markets, it underscores why many investors choose to compare several perspectives before forming a view on the company’s potential performance.

Explore 11 other fair value estimates on CAVA Group - why the stock might be worth 29% less than the current price!

Build Your Own CAVA Group Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.