CAVA Stock Alert: Earnings Report Preview! Is It Time To Buy?

By: Marcelo Colombo Published On: 12/08/2025

Finance Finance Finance Finance Finance

Fast-casual Mediterranean restaurant chain CAVA Group Inc. (NYSE: CAVA) is gearing up to release its Q2 2025 earnings report after market close today. Investors are keen to see if the company can maintain its growth trajectory amidst some headwinds.

Key Expectations for CAVA's Q2 Earnings

Analysts predict CAVA's revenue will reach approximately $286 million, a 22% increase year-over-year. However, adjusted earnings per share (EPS) are projected to be around $0.14, an 18% decrease from the previous year. This potential dip in profitability is a key area of concern for investors.

Same-restaurant sales growth is also expected to cool down to the mid-single digits, following a strong 10.8% gain in the last quarter. This slowdown is attributed to tougher comparisons and potentially softer traffic. Investors will be watching closely to see if CAVA can maintain its momentum in this area.

Factors Affecting CAVA's Profitability

Rising costs, including higher wage rates and produce prices, are putting pressure on restaurant-level margins. Analysts will be looking for any signs of supply chain stability or efficiency gains in labor scheduling that could improve the outlook for the second half of the year. CAVA's management has maintained its margin guidance, but the market is skeptical.

Expansion Plans and Future Outlook

Despite profitability concerns, CAVA is aggressively expanding, with 15 new restaurants opened in Q1 2025, bringing the total to 382 locations. Management has increased its forecast for new restaurant openings in fiscal 2025, projecting between 64 and 68 new locations. The performance of these new restaurants and the control of pre-opening spending will be crucial.

The company's guidance for the remainder of 2025 will be critical. A reaffirmation of unit growth targets and a stable margin outlook could help restore investor confidence. However, if the results disappoint and valuation remains elevated compared to peers, the stock could face further pressure. Early trading shows the stock up 2.3% on the day, but down significantly YTD.