Strong 1Q Shows On-Trend Brand and Team Layering Drivers in Place to Continue

Research evidence excerpt

Strong 1Q Shows On-Trend Brand and Team Layering Drivers in Place to Continue

USA | Restaurants

CAVA Group EquityMayResearch19, 2026

TARGET CHANGEStrong 1Q Shows On-Trend Brand and Team

RATING BUYLayering Drivers in Place to Continue

PRICE $78.12^

Solid 1Q beat on SSS upside (9.7% vs Cons 6.2%) and RLM also slightly above

Street, resulting in adj. EBITDA $62m vs Cons $57m. Momentum is carrying PRICE TARGET | % TO PT $95.00 ($85.00) | +22%

into 2Qtd where SSS is trending above raised FY guide (implied similar to ~10% 52W HIGH-LOW $98.79 - $43.41

in 1Q), with underlying drivers of the biz resonating well and helping capture/ FLOAT (%) | ADV MM (USD) 85.6% | 224.68

sustain near-term demand, despite the overall macro backdrop. We raise our MARKET CAP $9.1B

ests and continue to note conservatism in FY guide. Reit Buy, PT to $95. TICKER CAVA ^Prior trading day's closing price unless otherwise

noted.

1Q SSS beat with momentum extending into 2Qtd. 1Q SSS of 9.7% was well above 6.2% Cons, and

comprised of 6.8% traffic, and 2.9% check (incl pricing 1.4%). Despite some choppiness observed

FY (Dec) CHANGE TO JEFe JEF vs CONS

across the broader industry/category, demand trends appeared largely consistent throughout the

2026 2027 2026 2027

quarter, w/guest habits notably resilient (Co saw growth across all income cohorts, led by the

lower-end) and the challenging external environment less reflected in near-term results at CAVA. EBITDA +4% +3% -12% -10%

Underlying drivers of the business are resonating well to support core tenets of the brand including EPS NA NA NA NA

guest experience and relative value (pricing below peers & 50% of CPI, ops initiatives incl Cava Core

& Cava Current, AGM investments, digital/loyalty), with the recent introduction of salmon also likely