CAVANEUTRAL

CAVA Gross Margin Analysis

25.4%

Higher than 35% of Consumer Cyclical sector peers

Updated 274h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after paying the direct costs of producing goods, and CAVA's 25.4% means it keeps about $0.254 for every dollar of sales before other expenses.

Sector Performance

35th percentile

CAVA

25.4%

Sector Median

34.2%

Sector Avg

27.7%

Prior Period

19.6%(May 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue left after paying the direct costs of producing goods, and CAVA's 25.4% means it keeps about $0.254 for every dollar of sales before other expenses.

That figure sits below the sector median of 33.8%, placing CAVA in the 39th percentile among Consumer Cyclical peers. The trend is not assessable: year-over-year change is N/A, quarter-over-quarter change is N/A, and historical data covers only the most recent value of 25.4%. With a level that trails most peers and no trend data to confirm improvement or deterioration, the investment risk is elevated because margin weakness may be persistent, but no evidence yet shows it worsening. This low-to-mid margin level combined with an unknown trajectory does not support a bullish case, yet it also does not prove a decisive problem. The metric supports the overall NEUTRAL verdict, as it signals underperformance versus peers without confirming a clear negative momentum.

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 34.2%, placing it in the 35th percentile.

Who are CAVA's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: QSR (33.7%), CHWY (30.1%), W (30.0%), JACK (29.9%), ROST (29.6%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.