CAVA Group, Inc. (CAVA.N): Setting the Table for 2Q26: Looking to De-Risk Any Recent Disruption

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CAVA Group, Inc. (CAVA.N): Setting the Table for 2Q26: Looking to De-Risk Any Recent Disruption

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27 Jul 2026 16:53:26 ET │ 15 pages

CAVA Group, Inc. (CAVA.N)

Setting the Table for 2Q26: Looking to De-Risk Any Recent Disruption

CITI'S TAKE

A wide valuation gap vs. peers, investor concern regarding high

expectations, and now cyclospora headlines (i.e., some blanket consumer

avoidance of lettuce & produce-heavy concepts) mean shares gave back Neutral / High Risk

almost all earlier YTD outperformance. We don’t believe anything is Price (27 Jul 26 16:18) US$64.54

fundamentally broken in the concept, unit growth is on track, and shares

may be getting to levels where LT investors step in more aggressively. Target price US$79.00↓

However, it’s hard to make the case for much NT upside without comfort from US$92.00

that (1) any disruptions are fully baked into SSS/margin expectations, and Expected share price return 22.4%(2) investors are prepared for how any recent sales slowdown may impact

’26 NSP expectations. Expected dividend yield 0.0%

Expected total return 22.4%

Key questions/topics for the call — 2Q26 earnings due 8/11 AMC, 5PM ET call — Market Cap US$7,517M

(1) With the cyclospora outbreak still unresolved, what safeguards has CAVA put in

place and how can those be communicated to consumers? What sort of recovery

timeline is in ’26 guidance & is there a way to frame what ’26 guidance would have

looked like without cyclospora? (2) Has there been any difference in trends at new

Price Performancevs existing stores? If new stores came out with a little less “energy” than typical, how

does CAVA ultimately recapture that? (3) Trends in salmon mix/is the plan still to (RIC: CAVA.N, BB: CAVA US)

keep through year-end and move to white sweet potato in Jan? Update on the