Mediterranean fast-casual restaurant chain CAVA (NYSE: CAVA) will be reporting results this Tuesday afternoon. Here’s what to look for.
CAVA beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $331.8 million, up 28.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
Is CAVA a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting CAVA’s revenue to grow 22.3% year on year to $285.6 million, slowing from the 35.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CAVA has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3% on average.
Looking at CAVA’s peers in the modern fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Shake Shack delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 0.9%, and Potbelly reported revenues up 3.4%, topping estimates by 0.9%. Shake Shack traded down 20.7% following the results while Potbelly was up 12.8%.
Read our full analysis of Shake Shack’s results here and Potbelly’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the modern fast food stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.6% on average over the last month. CAVA is down 5.2% during the same time and is heading into earnings with an average analyst price target of $109.57 (compared to the current share price of $85.19).
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