Cava GroupCAVA +6.02%63 ROE % is 12.09% as of Mar. 2026, which is 41% below its 10-year median of 20.58. GuruFocus rates CAVA with a GF Score™ of 63/100 and a GF Value™ of $87.26 (Fairly Valued). The stock has 1 warning sign investors should review. Among 346 Restaurants companies, Cava Group ranks better than 56.36% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Cava Group's annualized net income for the quarter that ended in Mar. 2026 was $94 Mil. Cava Group's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $780 Mil. Therefore, Cava Group's annualized ROE % for the quarter that ended in Mar. 2026 was 12.09%.
The historical rank and industry rank for Cava Group's ROE % or its related term are showing as below:
CAVA'
s ROE % Range Over the Past 10 Years
Min: 8.28 Med: 20.58 Max: 21.72
Current: 8.28
During the past 5 years, Cava Group's highest ROE % was 21.72%. The lowest was 8.28%. And the median was 20.58%.
CAVA's ROE % is ranked better than 56.36% of 346
companies
in the Restaurants industry
Industry Median: 6.38
vs CAVA: 8.28
Cava Group (NYSE:CAVA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Cava Group ROE % Related Terms
Cava Group ROE % Historical Data
* Premium members only.
The historical data trend for Cava Group's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Cava Group's ROE % distribution charts can be found below:
* The bar in red indicates where Cava Group's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Cava Group (CAVA) has a ROE % of 12.09% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cava Group and its competitors. This is 41% below median its historical median of 20.58. Over the past decade, Cava Group's ROE % has ranged from 8.28 to 21.72. According to the industry distribution chart, Cava Group ranks #151 out of 346 companies in the Restaurants industry, placing it in the top 43.6%.
Is Cava Group's ROE % too high?
Cava Group's current ROE % of 12.09% is 41% below median its 10-year median of 20.58. Over the past 10 years, this metric has ranged from a low of 8.28 to a high of 21.72. The Restaurants industry median ROE % is 6.38. Cava Group's value of 12.09% is 89.5% above this industry median. Based on the distribution chart, Cava Group ranks #151 out of 346 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 ROE % compare to LKNCY and BROS?
According to the Restaurants industry distribution chart, Cava Group ranks #151 out of 346 companies for ROE %. This puts Cava Group in the upper half of its industry. The industry median ROE % is 6.38. Cava Group's value of 12.09% is 89.5% above this benchmark. Historically, Cava Group's own ROE % has ranged from 8.28 to 21.72 over the past decade. While the company's 10-year median is 20.58 vs. the industry median of 6.38, 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 ROE % for a Restaurants company?
The median ROE % among Restaurants companies is 6.38, based on 346 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cava Group's current ROE % of 12.09% is 89.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cava Group and its competitors. For the Restaurants industry, the median ROE % is 6.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cava Group's current ROE % is 12.09%, which is 41% below median its own 10-year median of 20.58. 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 $87.26, compared to a current price of $82.24 — trading 5.8% below its estimated fair value. The current ROE % is 12.09%, which is 41% below median its 10-year median of 20.58 and 89.5% above the Restaurants industry median of 6.38. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Cava Group (CAVA), the current ROE % is 12.09% 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 $87.26.
GuruFocus considers Cava Group to be Fairly Valued.
Key valuation signals for CAVA:
ROE %: 12.09% (41% below median its 10-year median of 20.58)
GF Value™: $87.26 vs. price of $82.24 (5.8% below fair value)
Industry Position: 89.5% above the Restaurants median (#151 of 346)
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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