CAVA Group

CAVA

Restaurants · Consumer Cyclical

Price

$73.63

+1.60 (+2.22%)

Market Cap

$8.58B

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jul 12, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Strong

Stability

Good

Valuation

Good

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Share count rising — dilution

+16022.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 732K (2021) → 118.0M (2025)

Winston Score History

The full picture

CAVA Group runs a chain of fast-casual Mediterranean restaurants across the United States. Customers order customizable bowls, pitas, and salads built around ingredients like hummus, falafel, and grilled meats. The company also sells a line of packaged dips and spreads in grocery stores, though restaurants are the core business.

CAVA makes most of its money from in-restaurant and digital food sales, charging customers per order rather than through subscriptions or memberships. As of 2024, it operates around 350 locations, almost entirely in the U.S., making it one of the largest Mediterranean fast-casual chains in the country. Its brand recognition in a relatively uncrowded cuisine category gives it some room to grow, but the main challenge is proving it can expand nationally without sacrificing food quality or profitability — a hurdle many fast-casual chains have struggled to clear.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+31.3% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+25.0% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

7.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$323M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

CAVA Group grew revenue 31% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

68.7%

Premium pricing power — 68.7% gross margin

Profit after running costs

Operating Margin

7.3%

Modest — 7.3% operating margin

Return on the money invested

ROCE

11.1%

Below par — 11.1% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+26.8%

Fast-growing sales (+26.8% YoY)

Profit growth

EPS YoY

-53.5%

Earnings shrinking (-53.5% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

317%

Turns 317% of profit into real cash

Spare cash per sale

FCF Margin

2.8%

Thin free cash flow (2.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

128.6x

Expensive — P/E 128.6

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+62.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (128.6 → 66.6)

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Dividends

Not applicable for this business.

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