CAVA Group CAVA
CAVA Group scores average on business quality (5.5 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What CAVA Group does
CAVA Group runs Mediterranean fast-casual restaurants, making money by selling bowl and pita meals directly to hungry consumers. The company is scaling its physical footprint to capture growing demand for healthy fast-casual dining.
- What it does best
CAVA dominates the Mediterranean fast-casual niche, posting a 35.3% ROE that outpaces peers like ARMK at 11.8%. This return is hard to copy given its strong brand loyalty and expanding restaurant footprint.
- The main risk
Rapid physical expansion strains restaurant-level execution and unit economics, risking margin compression if new store openings fail to match traffic growth.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin hits 12.2% with a net margin of 8.5%, expanding as scale brings supply chain efficiencies and stronger labor leverage.
The brand holds a middle-of-the-pack sector ranking with a 50th percentile operating margin, locking in consumers through a distinct Mediterranean menu offering.
Revenue grew 5.6% over the latest period, slowing down from its blistering historical expansion pace as the restaurant base matures.
Debt-to-equity sits at 1.5x with $336 million of net debt, while free cash flow reached $171M, showing solid cash generation despite heavy leverage.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 insiders bought $482K on the open market.
Our sealed record on CAVA
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
CAVA Group scores average on the Cluenex quality check (5.5 of 10), measured against its own industry. Profitability is fair, moat fair, growth steady and financial health fair.
In the last 90 days of SEC Form 4 filings: 2 insiders bought $482K on the open market.
Nov 2, 2026.
See CAVA today
- Today's verdict on CAVA, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “CAVA Group (CAVA)”, https://cluenex.com/stocks/cava/, data as of Oct 10, 2026.