CAVA Group, Inc. (NYSE:CAVA) Faces Challenges Amid Expansion

Font: Financial Modeling Prep  • Oct 31, 2025

• Chris O'Cull from Stifel Nicolaus lowered the price target for NYSE:CAVA to $100, indicating potential growth despite current challenges.
• CAVA's upcoming third-quarter earnings report is highly anticipated, with a history of surpassing earnings expectations but facing a projected decline in EPS.
• The stock is trading near its 52-week low, raising questions among investors about whether it presents a buying opportunity ahead of the earnings report.

CAVA Group, Inc. (NYSE:CAVA) is a fast-casual restaurant chain known for its Mediterranean-inspired menu. The company has been expanding into new markets, which has driven strong revenue growth. However, investors are cautious due to concerns over margin pressures and valuation. CAVA's competitors include other fast-casual chains like Chipotle and Panera Bread.

On October 31, 2025, Chris O'Cull from Stifel Nicolaus set a price target of $100 for CAVA, down from a previous target of $125, as highlighted by TheFly. At the time, CAVA's stock was priced at $53.72, suggesting a potential increase of approximately 86.17% to reach the new target. This adjustment reflects the challenges CAVA faces, including rising costs and inflation.

CAVA is set to release its third-quarter 2025 results on November 4. The company has a history of surpassing earnings expectations, exceeding the Zacks Consensus Estimate by 23.1% in the previous quarter. However, the Zacks Consensus Estimate for the upcoming quarter's earnings per share is 13 cents, a 13.3% decline from the previous year's EPS of 15 cents. This decline is attributed to margin pressures.

Despite CAVA's strong revenue growth, its stock has experienced a significant decline, trading near its 52-week low at $54.90, down 68% from its previous high of $172.43. This decline highlights the risks associated with growth stocks when they face setbacks. Investors are now questioning whether this dip presents a buying opportunity, especially with the upcoming earnings report.

CAVA's current stock price is $53.73, with a slight increase of 0.03, or approximately 0.06%. The stock has fluctuated between a low of $52.80 and a high of $54.79 today. With a market capitalization of approximately $6.23 billion and a trading volume of 4,573,056 shares, the upcoming earnings report and management's discussion will be crucial in determining the stock's future trajectory.