Cava GroupCAVA +6.02%63 Net Margin % is 5.38% as of Mar. 2026, which is 196% above its 10-year median of 1.82. GuruFocus rates CAVA with a GF Score™ of 63/100 and a GF Value™ of $87.31 (Fairly Valued). The stock has 1 warning sign investors should review. Among 366 Restaurants companies, Cava Group ranks better than 70.22% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Cava Group's Net Income for the
three
months ended in Mar. 2026 was $24 Mil. Cava Group's Revenue for the
three
months ended in Mar. 2026 was $438 Mil. Therefore, Cava Group's net margin for the quarter that ended in Mar. 2026 was 5.38%.
The historical rank and industry rank for Cava Group's Net Margin % or its related term are showing as below:
CAVA'
s Net Margin % Range Over the Past 10 Years
Min: -10.46 Med: 1.82 Max: 13.52
Current: 4.79
CAVA's Net Margin % is ranked better than 70.22% of 366
companies
in the Restaurants industry
Industry Median: 2.06
vs CAVA: 4.79
Cava Group (NYSE:CAVA) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Cava Group Net Margin % Related Terms
Cava Group Net Margin % Historical Data
* Premium members only.
The historical data trend for Cava Group's Net 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.
For the Restaurants subindustry, Cava Group's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Cava Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where Cava Group's Net 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.
Cava Group (CAVA) has a Net Margin % of 5.38% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Cava Group and its competitors. This is 196% above median its historical median of 1.82. According to the industry distribution chart, Cava Group ranks #109 out of 366 companies in the Restaurants industry, placing it in the top 29.8%.
Is Cava Group's Net Margin % too high?
Cava Group's current Net Margin % of 5.38% is 196% above median its 10-year median of 1.82. The Restaurants industry median Net Margin % is 2.06. Cava Group's value of 5.38% is 161.2% above this industry median. Based on the distribution chart, Cava Group ranks #109 out of 366 companies in the Restaurants industry, which is above the industry midpoint. 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 Net Margin % compare to LKNCY and BROS?
According to the Restaurants industry distribution chart, Cava Group ranks #109 out of 366 companies for Net Margin %. This puts Cava Group in the upper half of its industry. The industry median Net Margin % is 2.06. Cava Group's value of 5.38% is 161.2% above this benchmark. While the company's 10-year median is 1.82 vs. the industry median of 2.06, Cava Group has consistently been above 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 Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.06, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cava Group's current Net Margin % of 5.38% is 161.2% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Cava Group and its competitors. For the Restaurants industry, the median Net Margin % is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cava Group's current Net Margin % is 5.38%, which is 196% above median its own 10-year median of 1.82. 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 $87.31, compared to a current price of $82.24 — trading 5.8% below its estimated fair value. The current Net Margin % is 5.38%, which is 196% above median its 10-year median of 1.82 and 161.2% above the Restaurants industry median of 2.06. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Cava Group (CAVA), the current Net Margin % is 5.38% 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 $82.24 is trading 5.8% below its estimated GF Value™ of $87.31.
GuruFocus considers Cava Group to be Fairly Valued.
Key valuation signals for CAVA:
Net Margin %: 5.38% (196% above median its 10-year median of 1.82)
GF Value™: $87.31 vs. price of $82.24 (5.8% below fair value)
Industry Position: 161.2% above the Restaurants median (#109 of 366)
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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