CAVA Group Surges Over 12% in Early Trading After Beating Q2 Estimates

Stock News
08/12

CAVA Group Inc shares soared more than 12% in early trading on Wednesday, reaching $68.27. The rally followed the company's release of second-quarter fiscal 2026 earnings that exceeded Wall Street expectations.

Revenue for the quarter hit $368.4 million, marking a 31.3% year-over-year increase and surpassing the analyst consensus of $361 million. Adjusted earnings per share came in at $0.19, slightly above the anticipated $0.18. The company reaffirmed its full-year fiscal 2026 guidance, targeting 75 to 77 net new store openings and same-store sales growth of 4.5% to 6.5%.

Analyst sentiment turned bullish following the report. Jefferies initiated a "Buy" rating with a $95 price target, stating that CAVA Group Inc remains one of the few investable growth stories in the restaurant sector. RBC Capital Markets also raised its price target to $95, maintaining an "Outperform" rating.

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