CAVANEUTRAL

Return on Equity (ROE)

8.0%

Higher than 47% of Consumer Cyclical sector peers

Updated 168h ago

Sector Performance

47th percentile

CAVA

8.0%

Sector Median

8.7%

Sector Avg

-37.7%

📊

Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity — an 8.0% ROE means CAVA earns $0.08 per $1 of equity.

This sits just below the Consumer Cyclical sector median of 8.7%, placing the company at the 47th percentile among peers, meaning slightly less than half of competitors have a lower ROE. Trend data is limited: year-over-year change is not available, but quarter-over-quarter ROE declined by 2.4% from 8.2% to 8.0%. The combination of a near-median level and a small quarterly drop suggests modest profitability relative to equity, with a slight recent weakening that does not signal a major shift. This metric neither strongly supports nor contradicts the overall NEUTRAL verdict — the ROE is average for the sector, and the lack of longer-term trend data prevents drawing a clear positive or negative implication.

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.

How does CAVA's Return on Equity (ROE) compare to its sector?

CAVA's Return on Equity (ROE) of 8.0% compares to a Consumer Cyclical sector median of 8.7%, placing it in the 47th percentile.

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

The closest Consumer Cyclical peers by Return on Equity (ROE) include: LI (-2.5%), XPEV (-3.6%), HMC (-3.8%), CROX (-6.1%), CZR (-10.7%).

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.