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Investing.com - KeyBanc Capital Markets has lowered its price target on Cava Group Inc (NYSE:CAVA) to $85 from $100 while maintaining an Overweight rating on the Mediterranean fast-casual restaurant chain. According to InvestingPro data, CAVA’s stock has declined over 35% in the past six months, though it maintains a "GOOD" overall financial health score.
The adjustment follows Cava’s second-quarter 2025 results, which showed same-store sales (SSS) trends missing consensus estimates and likely falling short of buy-side expectations, according to KeyBanc analyst Christopher Carril.
Despite the sales miss, Cava’s earnings per share and EBITDA exceeded Street estimates as store-level margins aligned with consensus and general and administrative expenses largely offset most of the revenue shortfall.
The company has reported improved same-store sales growth in July and quarter-to-date, though trends likely remain below the mid-single-digit percentage range anticipated by analysts for the second half of the year, prompting Cava to lower its full-year outlook for same-store sales growth while maintaining its adjusted EBITDA range of $152 million to $159 million.
KeyBanc remains bullish on Cava’s overall growth story, citing best-in-class new unit returns, significant whitespace opportunity, latent pricing power, and category-leading status as factors that should warrant a premium valuation.
In other recent news, CAVA Group Inc . reported impressive financial results for the second quarter of 2025, beating market expectations. The company posted earnings per share of $0.16, surpassing the forecasted $0.14, and achieved revenue of $278.2 million, exceeding the anticipated $249.66 million. These results marked a positive surprise of 14.29% in earnings per share and 11.43% in revenue. Additionally, Stifel reiterated its Buy rating on CAVA Group, maintaining a price target of $125. Despite some disappointment with the company’s same-store sales growth of 2.1%, which fell short of Stifel’s and the Street’s expectations, the firm sees the recent share pullback as a buying opportunity. The market reacted positively to the earnings announcement, as reflected in after-hours trading. These developments indicate ongoing interest and analysis from investors and analysts alike.
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