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Cava GroupCAVA +1.10%62 3-Year ROIIC % is 20.42 as of Dec. 2025, which is 17% above its 10-year median of 17.50. GuruFocus rates CAVA with a GF Score™ of 62/100 and a GF Value™ of $88.48 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 334 Restaurants companies, Cava Group ranks better than 69.16% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Cava Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 20.42%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Cava Group's 3-Year ROIIC % or its related term are showing as below:
CAVA's 3-Year ROIIC % is ranked better than 69.16% of 334
companies
in the Restaurants industry
Industry Median: 3.905
vs CAVA: 20.42
Cava Group (NYSE:CAVA) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Cava Group 3-Year ROIIC % Related Terms
Cava Group 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Cava Group's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Restaurants subindustry, Cava Group's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Cava Group's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Cava Group's 3-Year ROIIC % falls into.
Cava Group's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 71.4334032 (Dec. 2025) - -14.777 (Dec. 2022) )
/
( 977.488 (Dec. 2025) - 555.272 (Dec. 2022) )
=
86.2104032
/
422.216
=
20.42%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Cava Group (CAVA) has a 3-Year ROIIC % of 20.42 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Cava Group and its competitors. This is 17% above median its historical median of 17.50. Over the past decade, Cava Group's 3-Year ROIIC % has ranged from 14.57 to 20.42. According to the industry distribution chart, Cava Group ranks #103 out of 334 companies in the Restaurants industry, placing it in the top 30.8%.
Is Cava Group's 3-Year ROIIC % too high?
Cava Group's current 3-Year ROIIC % of 20.42 is 17% above median its 10-year median of 17.50. Over the past 10 years, this metric has ranged from a low of 14.57 to a high of 20.42. The Restaurants industry median 3-Year ROIIC % is 3.91. Cava Group's value of 20.42 is 422.9% above this industry median. Based on the distribution chart, Cava Group ranks #103 out of 334 companies in the Restaurants industry, which is above the industry midpoint. Overall, Cava Group has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cava Group's 3-Year ROIIC % compare to BROS and DPZ?
According to the Restaurants industry distribution chart, Cava Group ranks #103 out of 334 companies for 3-Year ROIIC %. This puts Cava Group in the upper half of its industry. The industry median 3-Year ROIIC % is 3.91. Cava Group's value of 20.42 is 422.9% above this benchmark. Historically, Cava Group's own 3-Year ROIIC % has ranged from 14.57 to 20.42 over the past decade. While the company's 10-year median is 17.50 vs. the industry median of 3.91, 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 3-Year ROIIC % for a Restaurants company?
The median 3-Year ROIIC % among Restaurants companies is 3.91, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cava Group's current 3-Year ROIIC % of 20.42 is 422.9% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Cava Group and its competitors. For the Restaurants industry, the median 3-Year ROIIC % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cava Group's current 3-Year ROIIC % is 20.42, which is 17% above median its own 10-year median of 17.50. 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 Modestly Undervalued. The stock's GF Value™ is $88.48, compared to a current price of $68.85 — trading 22.2% below its estimated fair value. The current 3-Year ROIIC % is 20.42, which is 17% above median its 10-year median of 17.50 and 422.9% above the Restaurants industry median of 3.91. Cava Group's overall GF Score™ is 62/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Cava Group (CAVA), the current 3-Year ROIIC % is 20.42 as of Dec. 2025. 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 $68.85 is trading 22.2% below its estimated GF Value™ of $88.48.
GuruFocus considers Cava Group to be Modestly Undervalued.
Key valuation signals for CAVA:
3-Year ROIIC %: 20.42 (17% above median its 10-year median of 17.50)
GF Value™: $88.48 vs. price of $68.85 (22.2% below fair value)
Industry Position: 422.9% above the Restaurants median (#103 of 334)
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.
62GF Score
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