Is the business good?
How good a business is CAVA?
CAVA Group, Inc. earns 10% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
10%
Return on invested capital · cost of capital 9.0% · 1.1 points above what the capital costs: growth creates value
- Operating margin
- 5.5%
Operating margin · Restaurants median 8.6% · 12 months to Q2 2026
- Cash conversion
- 0.86×
Cash conversion · 0.35× a year ago · some of the reported profit has not turned into cash yet
- Gross margin
- 25%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | −11% |
| FY2022 | −11% |
| FY2023 | 0.65% |
| FY2024 | 4.5% |
| FY2025 | 4.7% |
Details›
- Gross margin12 months to Q2 2026
- 25%
- Operating margin12 months to Q2 2026
- 5.5%
- Net margin12 months to Q2 2026
- 5.0%
- Free cash flow margin
- 4.3%
- Revenue, trailing twelve months
- $1.22B
- Free cash flow, trailing twelve months
- $53M
- Net income, trailing twelve months
- $61M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.