CAVA's Top-Line Performance Expected to Continue Improving in H2, UBS Says

MT Newswires Live
Aug 12

CAVA's (CAVA) topline performance is poised to continue improving in H2, driven by lower impact from food safety headlines and several strategic initiatives, including menu innovation, digital/loyalty gains and operational improvements, UBS said in a Wednesday note.

UBS estimates Q3 and full-year same-store sales of 3.5% and 7%, respectively, and said that it expects additional opportunities to support growth into 2027, including from marketing plan enhancements given the current chief marketing officer search and the company's catering program, which enters a second test market in the fall.

The firm further anticipates Q3 restaurant-level margin will likely be lower than Q2 given pressure due to higher cost of goods sold, additional labor investments, and still limited pricing. UBS models 23.6% CAVA RLM for Q3 and 23.9% for 2026 and forecasted adjusted EBITDA of $190.9 million for the full-year.

UBS maintained its buy rating with a $90 price target on the company's stock.

Price: 67.24, Change: +6.43, Percent Change: +10.57

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