CAVACAVA Group, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (4.0×) and margins widening.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 10% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is CAVA?
CAVA Group, Inc. earns 11% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 2.0 points above what the capital costs: growth creates value
- Operating margin
- 5.2%
Operating margin · Restaurants median 7.8% · 12 months to Q2 2026
- Cash conversion
- 4.04×
Cash conversion · 4.12× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.04%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | −11% |
| FY2022 | −11% |
| FY2023 | 0.65% |
| FY2024 | 4.5% |
| FY2025 | 4.7% |
Details›
- Gross margin12 months to Q2 2026
- 25%
- Operating margin12 months to Q2 2026
- 5.2%
- Net margin12 months to Q2 2026
- 4.8%
- Free cash flow margin
- 3.6%
- Revenue, trailing twelve months
- $1.37B
- Free cash flow, trailing twelve months
- $49M
- Net income, trailing twelve months
- $66M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 11%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.