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Cava GroupCAVA -1.78%60 Earnings Yield (Joel Greenblatt) % is 1.10% as of Jun. 2026, which is 62% above its 10-year median of 0.68. GuruFocus rates CAVA with a GF Score™ of 60/100 and a GF Value™ of $89.76 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 367 Restaurants companies, Cava Group ranks worse than 66.21% on this metric.
Cava Group's Enterprise Value for the quarter that ended in Jun. 2026 was $9,140 Mil.
Cava Group's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was $101 Mil. Cava Group's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2026 was 1.10%.
The historical rank and industry rank for Cava Group's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
CAVA'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.12 Med: 0.68 Max: 1.76
Current: 1.3
During the past 5 years, the highest Earnings Yield (Joel Greenblatt) of Cava Group was 1.76%. The lowest was 0.12%. And the median was 0.68%.
CAVA's Earnings Yield (Joel Greenblatt) % is ranked worse than 66.21% of 367
companies
in the Restaurants industry
Industry Median: 3.95
vs CAVA: 1.30
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Cava Group's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2026 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Cava Group (NYSE:CAVA) Earnings Yield (Joel Greenblatt) % Explanation
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Cava Group Earnings Yield (Joel Greenblatt) % Related Terms
Cava Group Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Cava Group's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cava Group Earnings Yield (Joel Greenblatt) % Chart
For the Restaurants subindustry, Cava Group's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cava Group Earnings Yield (Joel Greenblatt) % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Cava Group's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Cava Group's Earnings Yield (Joel Greenblatt) % falls into.
Cava Group Earnings Yield (Joel Greenblatt) % Calculation
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Cava Groups Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Cava Group's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $101 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 1.10% mean?
Cava Group (CAVA) has a Earnings Yield (Joel Greenblatt) % of 1.10% as of Jun. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Cava Group and its competitors. This is 62% above median its historical median of 0.68. Over the past decade, Cava Group's Earnings Yield (Joel Greenblatt) % has ranged from 0.12 to 1.76. According to the industry distribution chart, Cava Group ranks #243 out of 367 companies in the Restaurants industry, placing it in the top 66.2%.
Is Cava Group's Earnings Yield (Joel Greenblatt) % too high?
Cava Group's current Earnings Yield (Joel Greenblatt) % of 1.10% is 62% above median its 10-year median of 0.68. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 1.76. The Restaurants industry median Earnings Yield (Joel Greenblatt) % is 3.95. Cava Group's value of 1.10% is 72.2% below this industry median. Based on the distribution chart, Cava Group ranks #243 out of 367 companies in the Restaurants industry, which is below the industry midpoint. Overall, Cava Group has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cava Group's Earnings Yield (Joel Greenblatt) % compare to BROS and EAT?
According to the Restaurants industry distribution chart, Cava Group ranks #243 out of 367 companies for Earnings Yield (Joel Greenblatt) %. This places Cava Group in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 3.95. Cava Group's value of 1.10% is 72.2% below this benchmark. Historically, Cava Group's own Earnings Yield (Joel Greenblatt) % has ranged from 0.12 to 1.76 over the past decade. While the company's 10-year median is 0.68 vs. the industry median of 3.95, Cava Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Restaurants company?
The median Earnings Yield (Joel Greenblatt) % among Restaurants companies is 3.95, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cava Group's current Earnings Yield (Joel Greenblatt) % of 1.10% is 72.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Cava Group and its competitors. For the Restaurants industry, the median Earnings Yield (Joel Greenblatt) % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cava Group's current Earnings Yield (Joel Greenblatt) % is 1.10%, which is 62% above median its own 10-year median of 0.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cava Group stock overvalued right now?
Based on GuruFocus' analysis, Cava Group (CAVA) is currently considered Modestly Undervalued. The stock's GF Value™ is $89.76, compared to a current price of $65.75 — trading 26.7% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 1.10%, which is 62% above median its 10-year median of 0.68 and 72.2% below the Restaurants industry median of 3.95. Cava Group's overall GF Score™ is 60/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Cava Group (CAVA), the current Earnings Yield (Joel Greenblatt) % is 1.10% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cava Group (CAVA) Overvalued in 2026?
Based on GuruFocus' analysis, Cava Group stock appears to be undervalued.
The current stock price of $65.75 is trading 26.7% below its estimated GF Value™ of $89.76.
GuruFocus considers Cava Group to be Modestly Undervalued.
Key valuation signals for CAVA:
Earnings Yield (Joel Greenblatt) %: 1.10% (62% above median its 10-year median of 0.68)
GF Value™: $89.76 vs. price of $65.75 (26.7% below fair value)
Industry Position: 72.2% below the Restaurants median (#243 of 367)
No single metric tells the full story. See the CAVA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cava Group Inc owns and operates a chain of restaurants. It operates a Mediterranean-inspired fast-casual restaurant brand offering menu items. The company's dips, spreads, and dressings are centrally produced and sold in grocery stores. The company's operations are conducted as two reportable segments: i) CAVA: It includes the operations of all company-owned CAVA restaurants, and ii) CAVA Foods: It includes the production of dips, spreads, and certain dressing bases used in CAVA restaurants as well as sales from the Company's consumer packaged goods business. The company generates the majority of its revenue from the CAVA segment.
60GF Score
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