CAVA Group, Inc.CAVA
NYSE • Consumer Cyclical
$73.64
P/E
133.31
PEG
—
FCF Yield
—
Rev Growth YoY
+20.9% YoY
Gross Margin
14.9%
Health Score
6/10
D/E Ratio
0.60
Confidence
LOW
Business Snapshot
CAVA Group, Inc. operates a fast-casual Mediterranean restaurant chain in the United States, with primary revenue from food and beverage sales across company-owned and franchise locations. It competes in the highly fragmented quick-service restaurant (QSR) market as a niche player with a differentiated cuisine positioning. The company is a small-cap stock (revenue of $1.18B TTM), reflecting its growth-stage profile and early expansion phase. A defining characteristic is its strong brand resonance and ability to generate positive free cash flow while still in a relatively early stage of geographic expansion.
Financial Health
Gross margin fell from 18.7% to 14.9% year-over-year, while net margin stands at 5.4%, indicating cost pressures are compressing profitability. Debt/equity of 0.6x and a current ratio of 2.65x point to a healthy, conservatively capitalised balance sheet with ample short-term liquidity...
Risk Assessment
- VALUATION — P/E of 133.31x is over 5.5x the sector average of 24x, indicating extreme premium pricing.
- REVENUE DECELERATION — QoQ revenue declined 5.9% against a YoY growth of 20.9%, flagging a possible loss of near-term momentum.
- 52-WEEK POSITION — Current price of $73.64 is 27% below the 52-week high of $100.94, suggesting the stock has seen significant selling pressure from its peak.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....