CAVA Group (CAVA) Stock Analysis & Winston Score

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.

Winston Score History

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

+20.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-93.9% YoY

YoY Growth Rate

Earnings declining

Insider Activity

10.2%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$283M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Growth + cash flow

CAVA Group is a rare growth stock that's already generating positive cash flow while growing at 21%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

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

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Quality

Gross Margin

14.9%

Thin — 14.9% gross margin

Operating Margin

3.1%

Thin — 3.1% operating margin

ROCE

1.1%

Weak — 1.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+22.4%

Fast-growing sales (22.4% YoY)

EPS YoY

-51.5%

Earnings shrinking (-51.5% YoY)

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

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

290%

Turns 290% of profit into real cash

FCF Margin

2.2%

Thin free cash flow (2.2%)

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

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Stability

Debt / Equity

N/A

Data not available

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

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

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Valuation

P/E Ratio (TTM)

136.3x

no trend

Expensive — P/E 136.3

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

P/E vs Forward

+52.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (136.3 → 83.9)

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Dividends

Not applicable for this business.

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