Cava GroupCAVA -1.83%63 Interest Coverage is No Debt (1) as of Mar. 2026. 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 262 Restaurants companies, Cava Group ranks worse than 381679.01% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Cava Group's
Operating Income
for the
three
months ended in Mar. 2026 was $34 Mil. Cava Group's Interest Expense for the
three
months ended in Mar. 2026 was $0 Mil.
Cava Group has no debt.
The higher the ratio, the stronger the company's financial strength is.
(1) Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
The historical rank and industry rank for Cava Group's Interest Coverage or its related term are showing as below:
CAVA's Interest Coverage is not ranked *
in the Restaurants industry.
Industry Median: 6.45 * Ranked among companies with meaningful Interest Coverage only.
Cava Group (NYSE:CAVA) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Cava Group Interest Coverage Related Terms
Cava Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cava Group's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
CAVA vs BROS, DPZ, LKNCY: Interest Coverage Comparison
For the Restaurants subindustry, Cava Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Cava Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cava Group's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
What does a Interest Coverage of No Debt <sup>(1)</sup> mean?
Cava Group (CAVA) has a Interest Coverage of No Debt (1) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cava Group and its competitors. According to the industry distribution chart, Cava Group ranks #999999 out of 262 companies in the Restaurants industry.
Is Cava Group's Interest Coverage too high?
Cava Group's current Interest Coverage is No Debt (1). Based on the distribution chart, Cava Group ranks #999999 out of 262 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 Interest Coverage compare to BROS and DPZ?
According to the Restaurants industry distribution chart, Cava Group ranks #999999 out of 262 companies for Interest Coverage. This places Cava Group in the lower half of its industry. The industry median Interest Coverage is 6.45. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cava Group and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cava Group's current Interest Coverage is No Debt (1). 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 Interest Coverage is No Debt (1). 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Cava Group (CAVA), the current Interest Coverage is No Debt (1) 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:
Interest Coverage: No Debt (1)
GF Value™: $87.36 vs. price of $81.87 (6.3% below fair value)
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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