CAVACAVA Group, Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (4.3×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 7.8% · 12 months to Q2 2026
- Cash conversion
- 4.33×
Cash conversion · 5.75× a year ago · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.