Cava GroupCAVA -1.83%63 Pretax Margin % is 6.85% as of Mar. 2026, which is 255% above its 10-year median of 1.93. 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 365 Restaurants companies, Cava Group ranks better than 70.41% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Cava Group's Pre-Tax Income for the
three
months ended in Mar. 2026 was $30 Mil. Cava Group's Revenue for the
three
months ended in Mar. 2026 was $438 Mil. Therefore, Cava Group's pretax margin for the quarter that ended in Mar. 2026 was 6.85%.
The historical rank and industry rank for Cava Group's Pretax Margin % or its related term are showing as below:
CAVA'
s Pretax Margin % Range Over the Past 10 Years
Min: -10.44 Med: 1.93 Max: 6.26
Current: 6.26
CAVA's Pretax Margin % is ranked better than 70.41% of 365
companies
in the Restaurants industry
Industry Median: 2.84
vs CAVA: 6.26
Cava Group (NYSE:CAVA) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Cava Group Pretax Margin % Related Terms
Cava Group Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Cava Group's Pretax 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: Pretax Margin % Comparison
For the Restaurants subindustry, Cava Group's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Cava Group's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Cava Group's Pretax 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 Pretax Margin % of 6.85% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Cava Group and its competitors. This is 255% above median its historical median of 1.93. According to the industry distribution chart, Cava Group ranks #108 out of 365 companies in the Restaurants industry, placing it in the top 29.6%.
Is Cava Group's Pretax Margin % too high?
Cava Group's current Pretax Margin % of 6.85% is 255% above median its 10-year median of 1.93. The Restaurants industry median Pretax Margin % is 2.84. Cava Group's value of 6.85% is 141.2% above this industry median. Based on the distribution chart, Cava Group ranks #108 out of 365 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 Pretax Margin % compare to BROS and DPZ?
According to the Restaurants industry distribution chart, Cava Group ranks #108 out of 365 companies for Pretax Margin %. This puts Cava Group in the upper half of its industry. The industry median Pretax Margin % is 2.84. Cava Group's value of 6.85% is 141.2% above this benchmark. While the company's 10-year median is 1.93 vs. the industry median of 2.84, 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 Pretax Margin % for a Restaurants company?
The median Pretax Margin % among Restaurants companies is 2.84, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cava Group's current Pretax Margin % of 6.85% is 141.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Cava Group and its competitors. For the Restaurants industry, the median Pretax Margin % is 2.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cava Group's current Pretax Margin % is 6.85%, which is 255% above median its own 10-year median of 1.93. 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 Pretax Margin % is 6.85%, which is 255% above median its 10-year median of 1.93 and 141.2% above the Restaurants industry median of 2.84. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Cava Group (CAVA), the current Pretax Margin % is 6.85% 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:
Pretax Margin %: 6.85% (255% above median its 10-year median of 1.93)
GF Value™: $87.36 vs. price of $81.87 (6.3% below fair value)
Industry Position: 141.2% above the Restaurants median (#108 of 365)
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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