Cava GroupCAVA -1.83%63 Gross Margin % is 25.37% as of Mar. 2026, which is 3% above its 10-year median of 24.62. GuruFocus rates CAVA with a GF Score™ of 63/100 and a GF Value™ of $87.36 (Fairly Valued). The stock has 1 warning sign investors should review. Among 358 Restaurants companies, Cava Group ranks worse than 80.45% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Cava Group's Gross Profit for the
three
months ended in Mar. 2026 was $111 Mil. Cava Group's Revenue for the
three
months ended in Mar. 2026 was $438 Mil. Therefore, Cava Group's Gross Margin % for the quarter that ended in Mar. 2026 was 25.37%.
The historical rank and industry rank for Cava Group's Gross Margin % or its related term are showing as below:
CAVA'
s Gross Margin % Range Over the Past 10 Years
Min: 16.43 Med: 24.62 Max: 25.09
Current: 24.69
During the past 5 years, the highestGross Margin % of Cava Group was 25.09%. The lowest was 16.43%. And the median was 24.62%.
CAVA's Gross Margin % is ranked worse than 80.45% of 358
companies
in the Restaurants industry
Industry Median: 45.685
vs CAVA: 24.69
Cava Group had a gross margin of 25.37% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Cava Group was 0.00% per year.
Cava Group (NYSE:CAVA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Cava Group had a gross margin of 25.37% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Cava Group Gross Margin % Related Terms
Cava Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Cava Group's Gross Margin % 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 vs BROS, DPZ, LKNCY: Gross Margin % Comparison
For the Restaurants subindustry, Cava Group's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Cava Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cava Group's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Cava Group (CAVA) has a Gross Margin % of 25.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Cava Group and its competitors. This is near median its historical median of 24.62. Over the past decade, Cava Group's Gross Margin % has ranged from 16.43 to 25.09. According to the industry distribution chart, Cava Group ranks #288 out of 358 companies in the Restaurants industry, placing it in the top 80.4%.
Is Cava Group's Gross Margin % too high?
Cava Group's current Gross Margin % of 25.37% is near median its 10-year median of 24.62. Over the past 10 years, this metric has ranged from a low of 16.43 to a high of 25.09. The Restaurants industry median Gross Margin % is 45.69. Cava Group's value of 25.37% is 44.5% below this industry median. Based on the distribution chart, Cava Group ranks #288 out of 358 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Cava Group has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cava Group's Gross Margin % compare to BROS and DPZ?
According to the Restaurants industry distribution chart, Cava Group ranks #288 out of 358 companies for Gross Margin %. This places Cava Group in the lower half of its industry. The industry median Gross Margin % is 45.69. Cava Group's value of 25.37% is 44.5% below this benchmark. Historically, Cava Group's own Gross Margin % has ranged from 16.43 to 25.09 over the past decade. While the company's 10-year median is 24.62 vs. the industry median of 45.69, 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 Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.69, based on 358 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cava Group's current Gross Margin % of 25.37% is 44.5% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Cava Group and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cava Group's current Gross Margin % is 25.37%, which is near median its own 10-year median of 24.62. 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 Fairly Valued. The stock's GF Value™ is $87.36, compared to a current price of $81.87 — trading 6.3% below its estimated fair value. The current Gross Margin % is 25.37%, which is near median its 10-year median of 24.62 and 44.5% below the Restaurants industry median of 45.69. Cava Group's overall GF Score™ is 63/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Cava Group (CAVA), the current Gross Margin % is 25.37% as of Mar. 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 $81.87 is trading 6.3% below its estimated GF Value™ of $87.36.
GuruFocus considers Cava Group to be Fairly Valued.
Key valuation signals for CAVA:
Gross Margin %: 25.37% (near median its 10-year median of 24.62)
GF Value™: $87.36 vs. price of $81.87 (6.3% below fair value)
Industry Position: 44.5% below the Restaurants median (#288 of 358)
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.
63GF Score
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