CAVANEUTRAL

CAVA Return on Equity (ROE) Analysis

8.3%

Updated 275h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so CAVA’s 8.3% means it earns $0.083 per $1 of equity.

Sector Performance

32th percentile

CAVA

8.3%

Sector Median

13.3%

Sector Avg

17.0%

Prior Period

8.0%(Aug 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so CAVA’s 8.3% means it earns $0.083 per $1 of equity.

That sits well below the sector median of 13.3%, placing CAVA in the 32nd percentile among peers. Trend data is limited: the year-over-year change is not available, but quarter-over-quarter ROE rose 3.8% from 8.0% to 8.3%. The absolute level is low compared to peers, which points to below-average profitability efficiency, but the recent quarterly uptick offers a modest sign of improvement. This combination suggests a middle-risk profile: the low ROE is a watchpoint, while the positive QoQ move keeps the downside from being severe. This metric largely supports the overall NEUTRAL verdict, since it neither confirms strong performance nor signals a clear deterioration.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CAVA?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are CAVA's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: EVGO (-34.6%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.