CAVANEUTRAL

Gross Margin

25.4%

Higher than 34% of Consumer Cyclical sector peers

Updated 168h ago

Sector Performance

34th percentile

CAVA

25.4%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

CAVA's gross margin of 25.4% means that for every dollar of revenue, the company keeps 25.4 cents after paying the direct costs of producing its food, which is a measure of its core profitability.

This figure sits below the Consumer Cyclical sector median of 36.6%, placing CAVA in the 34th percentile among its peers — indicating weaker gross profitability than two-thirds of comparable companies. The trend is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and there are no historical values beyond the most recent single data point. The combination of a below-median gross margin and no trend data creates uncertainty; investors face a risk that this low margin is persistent or could worsen, without any evidence of improvement. This metric supports the overall NEUTRAL verdict, as the below-peer level suggests a disadvantage but the absence of trend prevents a clear bullish or bearish conclusion.

Frequently Asked Questions

What does the Gross Margin tell investors about CAVA?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does CAVA's Gross Margin compare to its sector?

CAVA's Gross Margin of 25.4% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 34th percentile.

Who are CAVA's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BBY (23.5%), BROS (23.1%), TSLA (21.1%), XPEV (20.6%), BWA (19.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.