CAVA Group, Inc. owns and operates a chain of restaurants under the CAVA brand in the United States. The company also offers dips, spreads, and dressings through grocery stores. In addition, the company provides online and mobile ordering platforms. Cava Group, Inc. was founded in 2006 and is headquartered in Washington, the District of Columbia.

CAVA Group, Inc.

Below is Validea's guru fundamental report for CAVA GROUP INC (CAVA). Of the 22 guru strategies we follow, CAVA rates highest using our Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
CAVA GROUP INC (CAVA) is a mid-cap growth stock in the Retail (Specialty) industry. The rating using this strategy is 57% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of CAVA GROUP INC
More Information on Benjamin Graham
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
Additional Research Links
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CAVA Quantitative Stock Analysis - Benjamin Graham

Why Investors Have Soured on Restaurant Stocks

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in CAVA Group Inc (Symbol: CAVA), where a total of 37,282 contracts have traded so far, representing approximately 3.7 million underlying shares. That amounts to about 61% of CAVA's average daily trading volume over the past month of 6.1 million shares. Particularly high volume was seen for the $55 strike put option expiring October 17, 2025, with 9,105 contracts trading so far today, representing approximately 910,500 underlying shares of CAVA. Below is a chart showing CAVA's trailing twelve month trading history, with the $55 strike highlighted in orange:
Celsius Holdings Inc (Symbol: CELH) options are showing a volume of 43,333 contracts thus far today. That number of contracts represents approximately 4.3 million underlying shares, working out to a sizeable 60.2% of CELH's average daily trading volume over the past month, of 7.2 million shares. Particularly high volume was seen for the $60 strike put option expiring August 29, 2025, with 2,279 contracts trading so far today, representing approximately 227,900 underlying shares of CELH. Below is a chart showing CELH's trailing twelve month trading history, with the $60 strike highlighted in orange:
And Yext Inc (Symbol: YEXT) saw options trading volume of 3,519 contracts, representing approximately 351,900 underlying shares or approximately 59.3% of YEXT's average daily trading volume over the past month, of 593,670 shares. Particularly high volume was seen for the $8 strike put option expiring September 19, 2025, with 766 contracts trading so far today, representing approximately 76,600 underlying shares of YEXT. Below is a chart showing YEXT's trailing twelve month trading history, with the $8 strike highlighted in orange:
For the various different available expirations for CAVA options, CELH options, or YEXT options, visit StockOptionsChannel.com.
Cash Dividend
Stryker market cap history
NEXT Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Monday Option Activity: CAVA, CELH, YEXT

A notable restaurant duo, Chipotle Mexican Grill CMG and CAVA Group CAVA, both faced pressure following the release of their quarterly results, adding fuel to the already-poor share performance from each in 2025.
Image Source: Zacks Investment Research
With both stocks coming well off all-time highs, it raises a valid question – what’s the better pick moving forward? Let’s take a closer look.
CAVA Faces Downward Revisions
CAVA posted mixed results relative to our consensus estimates, exceeding the Zacks Consensus EPS estimate by 23% but falling short of sales expectation by nearly 3%. Sales were up 20% YoY, whereas earnings were down 15% from the year-ago period.
While the sales growth is undoubtedly strong, it was primarily driven by the opening of new locations, with CAVA opening 16 new restaurants throughout the period. But what investors didn’t like was comparable restaurant sales growth of 2.1%, a far cry from the 10.8% mark in the prior quarter. CAVA’s restaurant operating margin also totaled 26.3%, down from the 26.5% mark a year-ago.
Further, comparable restaurant sales growth of 2.1% primarily came from higher menu prices, with guess traffic being roughly flat. CAVA trimmed guidance across several metrics, most notably comparable restaurant sales growth, now expecting growth in a band of 4 – 6% compared to 6 – 8% prior for its FY25.
The slowing growth in its existing locations paired with decreased traffic helps explain the poor share reaction post-earnings, with analysts also recalculating their EPS and sales expectations following the print and downwardly revised guidance. The stock is currently a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
CMG Trims Guidance
CMG’s results were similarly mixed concerning our consensus expectations, with the company posting a 3% EPS beat while falling short of sales expectations by roughly 1.2%. Sales were up 3% year-over-year, whereas earnings fell 3% from the year-ago period.
Notably, comparable restaurant sales fell 4% year-over-year. The company also trimmed its FY25 comparable restaurant sales growth guidance to flat year-over-year, which compares to a previously anticipated low-single-digit range.
Like CAVA, the company’s existing restaurants also faced a profitability crunch, with its restaurant level operating margin contracting to 27.4% vs. 28.9% in the year-ago period. Analysts haven’t had the same bearish reaction post-earnings concerning their revisions, with expectations for CMG largely remaining stable post-earnings and even increasing for its next release.
CMG is currently a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
What’s The Better Buy?
While Chipotle Mexican Grill CMG and CAVA Group CAVA both reflect intriguing options for restaurant exposure, the reality remains that they’ve faced considerable share pressure from weak quarterly results that have revealed slowing growth.
Concerning the valuation picture, CAVA’s trading at a premium to CMG, with CMG’s restaurant margins just as strong (and with a history of consistency) while its EPS outlook also remains much more constructive.
The Zacks Rank #4 (Sell) rating on CAVA reflects a tough near-term outlook concerning share performance, whereas a largely-stable EPS picture for CMG keeps it a Zacks Rank #3 (Hold).
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CAVA vs. Chipotle (CMG): What's the Better Buy?

Key Points
Cava stock crashed after the restaurant chain missed expectations for the second quarter.
Same-store sales slowed, and the company slashed its full-year outlook.
The stock is still pricey, but it looks more appealing than in the past.
"The next Chipotle" isn't getting much love from investors these days. Shares of Cava Group (NYSE: CAVA) crashed this week following a second-quarter report that missed the mark. Revenue came up short of analyst expectations, and same-store sales grew by just 2.1%. The fast-casual restaurant chain also slashed its full-year outlook for same-store sales to a range of 4% to 6%, a full two percentage points lower than its previous guidance.
What's happening to Cava?
Cava CFO Tricia Tolivar pointed to a few factors that impacted the company's Q2 results. First, Cava added steak to its menu last year, giving it a boost that the company is now lapping. The steak launch made the comparison tougher and contributed to the slowdown in same-store sales.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Second, the restaurants that opened in 2024 suffered what Tolivar called a "honeymoon effect." Those restaurants outperformed sales expectations initially, but that quick initial growth couldn't be sustained. The company hasn't experienced this type of post-opening slowdown in previous years, so it was unexpected.
The state of the economy is also playing a role. Tolivar noted that Cava wasn't immune to the macroeconomic environment but that attach rates for premium items hadn't changed. It's unclear whether economic factors impacted the number of visits to Cava's restaurants, although the company did disclose that same-store sales had started to reaccelerate toward the end of the quarter. Same-store guest traffic was roughly flat in Q2.
Setting big goals
Despite the troubles in Q2, Cava still has its sights set on greatly expanding its restaurant base. The company opened 16 new restaurants in Q2, bringing its total restaurant count to 398. It expects its full-year restaurant-opening tally to reach 68 or 70. By 2032, Cava is planning to have 1,000 restaurants in operation. The company will need to average around 80 restaurants openings annually starting in 2026 to hit that number.
At its current average unit volume (AUV) of $2.9 million, revenue would reach $2.9 billion with 1,000 restaurants. There's likely some room to grow AUV. Chipotle averages about $3.1 million in annual sales per restaurant, for comparison. Cava's revenue is expected to reach around $1.18 billion this year.
Should you buy the dip?
Cava was an extremely expensive stock at its late-2024 peak, at one point trading for around 18 times annual sales. The valuation has since fallen back to earth, but the stock still trades at a premium to industry leader Chipotle. Cava stock now trades for around 7.3 times trailing-12-month sales, compared to roughly 5 for Chipotle.
Cava should be able to grow faster than Chipotle by virtue of its restaurant base being much smaller. Chipotle operates just over 3,800 restaurants or nearly 10 times as many locations as Cava. Even with weak same-store sales growth in Q2, Cava's total revenue rose by 20.3% year over year.
New restaurants can continue to drive double-digit revenue growth, although a tough economy could throw a wrench in the company's expansion plans. If Cava's slowdown turns out to be more than just some tough comparisons, or if the U.S. economy worsens, the company may need to slow down its pace of restaurant openings.
The good news is that the Cava model appears to work. The company's 2025 restaurant openings are on track to reach AUVs above $3 million, inching closer to Chipotle levels. Cava doesn't seem like a fad that's going to fade away like some other fast-casual chains that ran into roadblocks. Cava is undoubtedly popular, and the company has a good chance at following in Chipotle's footsteps.
Cava's valuation still looks to be on the high side, especially with some uncertainty surrounding its same-store sales growth trajectory. But for those who found the stock too expensive in the past, the post-earnings crash presents a more attractive entry point for long-term investors.
Should you invest $1,000 in Cava Group right now?
Before you buy stock in Cava Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cava Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,113,059!*
Now, it’s worth noting Stock Advisor’s total average return is 1,062% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 13, 2025
Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends Cava Group and recommends the following options: short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Cava Stock Is Crashing. Is It Time to Buy?

Known for generating massive gains for investors, Chipotle CMG and Cava Group CAVA have seen their stocks fall mightily to 52-week lows following their lackluster Q2 results.
This comes as the Zacks Retail-Restaurants Industry is currently in the bottom 21% of over 240 Zacks industries, with Chipotle and Cava starting to feel the broader consumer slowdown in fast casual dining after previously avoiding the downward trend, even as other food chains faltered from slower traffic and weaker sales.
Still, long-term investors often prefer to buy into the weakness in stocks of prominent companies for what is hopefully a sharp rebound at some point, but may be wondering if it's best to avoid the drop in Chipotle and Cava shares for now.
Chipotle & Cava’s Weak Guidance
Adding to the downward pressure on Chipotle and Cava stock is that both lowered their full-year same-store sales guidance following their lackluster Q2 reports.
Chipotle cut its full-year guidance for same-store sales growth to flat, down from previous forecasts of a low-single digit increase. This comes as Chipotle’s store traffic declined 5% during Q2, contributing to a 4% drop in same-store sales.
Meanwhile, Cava revised its full-year same-store sales growth forecast to 3-4%, down from a previous range of 4-6%. Despite seeing a 2% increase in same-store sales during Q2, Cava’s traffic trends were flat for the quarter.
Chipotle’s Long-Term Vision Includes More International Expansion
Taking over the helm of Chipotle last year, CEO Scott Boatwright is focused on aggressive expansion and operational excellence, which his predecessor Brian Niccol helped the company thrive on before departing to lead Starbucks SBUX. Regarding expansion goals, Chipotle aims to reach 7,000 North American locations, currently having more than 3,700 stores and aiming to open 345 new restaurants this year.
Boatwright also sees global expansion as a “big number” opportunity outside of Canada, with Chipotle having locations in the United Kingdom (19 stores), France (6 stores), Germany (2 stores), and Kuwait (1 store). Furthermore, Chipotle is actively looking to expand in the Middle East through a partnership with the Alshaya Group, with new restaurants planned for Kuwait and Dubai. It’s also noteworthy that 80% of Chipotle’s new stores will feature Chipotlanes, mobile-order drive-thrus that have become one of the fastest scaling initiatives in the brand's history.
Cava’s Domestic Expansion & Automation Initiatives
As for Cava Group, CEO Brett Schulman has remained bullish on the company’s long-term trajectory despite recent uncertainty. Going public in 2023, the Mediterranean fast-casual restaurant has nearly 400 locations in the U.S., targeting 1,000 restaurants by 2032.
Notably, Schulman sees automation as a way to enhance the company’s operations, with Cava investing in tools that streamline operations, including an investment in Hyphen, a platform that develops automated make-lines for restaurant kitchens.
Monitoring Chipotle & Cava’s Growth Trajectories
Based on Zacks' estimates, Chipotle’s total sales are now expected to be up 7% this year and are projected to rise another 13% in fiscal 2026 to $13.67 billion. On the bottom line, annual earnings are currently slated to increase 8% in FY25 and are projected to rise another 17% in FY26 to $1.42 per share.
Image Source: Zacks Investment Research
Pivoting to Cava, its total sales are projected to increase over 20% in FY25 and FY26, with projections edging toward $1.45 billion. However, it’s worth mentioning that this has slowed from 30% or more annual sales growth in recent years. Moving further past the probability line, Cava’s EPS is expected to be up 36% in FY25 and is projected to increase another 17% next year to $0.67 per share.
Image Source: Zacks Investment Research
Performance & Valuation Comparison
Year to date, Chipotle stock is down nearly 30% with Cava shares falling roughly 40%, vastly underperforming the benchmark S&P 500’s return of +10% and even the Zacks Retail-Restaurant Market’s -3%.
That said, over the last two years, Cava's stock is still sitting on gains of more than +40% to roughly match the broader market, with Chipotle shares up +15% and also beating the Retail-Restaurant Market’s +3% despite underperforming the S&P 500.
Image Source: Zacks Investment Research
Previously trading at more than $3,000 a share before its historic 50-1 stock split in June of 2024, Chipotle stock is currently trading at just over $40 and 35.9X forward earnings. Although at a noticeable premium to the benchmark’s 24.7X forward earnings multiple and the industry average of 19.4X, Chipotle does trade well below Cava at 124.6X, with CAVA trading around $70.
While price-to-sales may be a better indicator of Cava’s true value to investors at this stage of its corporate life, CAVA has a forward P/S ratio of 6.8X, which is also a more noticeable stretch to the industry average of less than 1X, with Chipotle at 4.8X.
Image Source: Zacks Investment Research
Conclusion & Final Thoughts
It may be tempting to buy Chipotle and Cava Group stock near their 52-week lows, but there could still be much better buying opportunities ahead. This is certainly the case for Cava’s stock, which lands a Zacks Rank #4 (Sell) considering its lofty valuation amid weaker demand for fast casual dining.
Chipotle’s stock, on the other hand, has a Zacks Rank #3 (Hold) and may offer better long-term value to investors at current levels, especially considering its international expansion. Of course, Chipotle also has a longer track record and stronger balance sheet to navigate the Retail-Restaurant Industry’s uncertainty.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Buy or Avoid the Drop in Chipotle & Cava Group's Stock?

Key Points
Cava's same-store sales slowed to just 2.1% in the second quarter.
The company also cut its same-store sales guidance for the year to 4%-6%.
Management is still targeting at least 1,000 stores by 2032.
Shares of Cava (NYSE: CAVA) were taking a dive today after the fast-casual chain posted disappointing results in its second-quarter earnings report.
As of 10:35 a.m. ET, the stock is down 16.7% on the news.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Cava's momentum slows
The chain has delivered mostly blockbuster results since its 2023 IPO, but Cava's growth significantly slowed in the second quarter as same-store sales rose just 2.1%. The weak comparable sales growth comes at a time when much of the restaurant industry is struggling, as discretionary spending has pulled back due to fears around trade tensions.
Overall revenue was up 20.3% to $278.2 million thanks to a steady flow of new restaurant openings, but that missed the consensus at $285.2 million.
Average unit volume improved from $2.7 million to $2.9 million, a positive sign for the overall growth in the business, and restaurant-level profit margin was strong at 26.3%, down slightly from 26.5% in the quarter a year ago.
On the bottom line, adjusted earnings per share improved from $0.14 to $0.16, which beat expectations at $0.13.
CEO Brett Schulman said, "During the second quarter of 2025, we continued to grow market share and firmly establish our category-defining leadership position."
What's next for Cava
Looking ahead, Cava also disappointed the market by cutting its guidance for the full year.
The company now sees same-store sales growth of 4%-6%, down from a previous range of 6%-8%. However, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance remained the same at $152 million-$159 million.
Overall, the sell-off shouldn't be surprising due to the slowdown in sales and the guidance cut. However, the long-term outlook is still promising for Cava, as it expects to grow from around 400 restaurants currently to more than 1,000 by 2032. While the slowdown could last more than a quarter, it's not a reason for long-term investors to sell the stock.
Should you invest $1,000 in Cava Group right now?
Before you buy stock in Cava Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cava Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,863!*
Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 13, 2025
Jeremy Bowman has positions in Cava Group. The Motley Fool recommends Cava Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Cava Stock Tumbled Today

Cava Group (CAVA) reported $280.62 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 20.2%. EPS of $0.16 for the same period compares to $0.17 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $286.56 million, representing a surprise of -2.07%. The company delivered an EPS surprise of +23.08%, with the consensus EPS estimate being $0.13.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Cava performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
CAVA Same Restaurant Sales Growth: 2.1% compared to the 5.9% average estimate based on eight analysts.
End of period CAVA Restaurants: 398 compared to the 398 average estimate based on seven analysts.
New CAVA restaurant openings, including converted Zoes Kitchen locations: 16 versus 14 estimated by three analysts on average.
Occupancy as a percentage of CAVA Revenue: 6.8% versus 6.9% estimated by two analysts on average.
Revenue- CAVA Restaurant: $278.25 million compared to the $284.14 million average estimate based on eight analysts. The reported number represents a change of +20.3% year over year.
Restaurant-Level profit- CAVA: $73.26 million compared to the $74.79 million average estimate based on three analysts.
Shares of Cava have returned -8.4% over the past month versus the Zacks S&P 500 composite's +2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Compared to Estimates, Cava (CAVA) Q2 Earnings: A Look at Key Metrics

Tuesday, August 12, 2025
Markets shook off a lukewarm Consumer Price Index (CPI) report ahead of the opening bell today, and as the trading session wore on, confidence gained even further. The S&P 500 and the tech-heavy (AI-heavy) Nasdaq both notched new closing highs today. The Dow gained +483 points today, +1.13%, the S&P 500 was +72 points, +1.13%, the Nasdaq is +296 points, +1.39%, and the small-cap Russell 2000 left the field in the dust: +2.99% on the day.
Year to date, the Russell 2000 has swung back to positive territory based on today’s big gains: +2.3% since the start of the year. This is the clear laggard among major indexes, as bouts of robust positivity vacillated with moments of murky clarity, which took a bite out of small-caps in spots over the year. By contrast, the Dow is +4.5% since the start of the year, the S&P 500 is +9.6% and the Nasdaq +12.3%.
We appear to be pricing-in the surety of a Fed rate cut in September, still more than a month away (there is no August Fed meeting). Depending on economic data that comes out between now and then, we are likely to see the Fed funds rate cut either -25 basis points (bps) to a range of 4.00-4.25% — where we haven’t been since December 2022, by the way, when interest rates were moving swiftly in the opposite direction — or -50 bps to 3.75-4.00%.
Q2 Earnings at a Glance: CAVA, CRWV
CAVA Group CAVA shares are dropping -22.5% at this hour, following its mixed Q2 report after the closing bell, Earnings of 16 cents per share came out ahead of the 13 cents in the Zacks consensus, but revenues of $281 million missed expectations for $287 million in the quarter. Comps came in only a third of what analysts were expecting: +2.1% vs. +6.1% estimated. Full-year revenue guidance has been pulled back to +4-6% from +6-8% previously.
Cloud-based AI service CoreWeave CRWV are also down in late trading, albeit not by as much: -5.5%. A much wider-than-expected bottom line loss of -60 cents per share (versus -23 cents expected) was offset somewhat by better-than-expected revenues: $1.21 billion versus +1.08 billion forecast. However, bookings were whispered to be a bit higher in the quarter; the company appears very confident to be able to meet their customers’ AI needs going forward.
What to Expect from the Stock Market Tomorrow
Usually, when CPI reports hit the tape, the “other shoe drops” — Producer Price Index (PPI), the wholesale print to the CPI’s retail numbers — the very next morning. But this week, we’ll be waiting until Thursday morning for PPI results, which are often seen as a precursor to future consumer prices.
Wednesday, we’ll have to settle for presentations by Fed Chairs Tom Barkin (Richmond, VA), Austan Goolsbee (Chicago) and Raphael Bostic (Atlanta). All three gents voted to keep the Fed in place at 4.25-4.50% at the July meeting; have they turned a corner based on economic data that woulds cause them to vote for a cut next time around?
As for earnings reports Wednesday, Chili’s and Maggiano’s parent Brinker International EAT reports ahead of the open, Cisco Systems CSCO after the close. While Brinker looks to post +50% earnings growth year over year, Cisco is projected to earn +11.5% on earning’s in the company’s fiscal Q4 report.
Questions or comments about this article and/or author? Click here>>
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Markets Stride to New Highs on CPI Data, Pending Rate Cuts

Cava Group (CAVA) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +23.08%. A quarter ago, it was expected that this Mediterranean restaurant chain would post earnings of $0.14 per share when it actually produced earnings of $0.22, delivering a surprise of +57.14%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Cava, which belongs to the Zacks Retail - Restaurants industry, posted revenues of $280.62 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.07%. This compares to year-ago revenues of $233.49 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Cava shares have lost about 27% since the beginning of the year versus the S&P 500's gain of 8.4%.
What's Next for Cava?
While Cava has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Cava was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.16 on $296.92 million in revenues for the coming quarter and $0.58 on $1.19 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Restaurants is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Arcos Dorados (ARCO), another stock in the same industry, has yet to report results for the quarter ended June 2025. The results are expected to be released on August 13.
This restaurant owner is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -61.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Arcos Dorados' revenues are expected to be $1.12 billion, up 1.1% from the year-ago quarter.
Should You Invest in CAVA Group, Inc. (CAVA)?
Before you invest in CAVA Group, Inc. (CAVA), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CAVA Group, Inc.

About

Capitalization

Shares outstanding

Sector

Industry

ISIN

Lot size