CAVA Stock Eyes Best Day In 5 Months — Wall Street Sees Recovery Taking Shape As Cyclospora Fears Ease

• RBC Capital said Cava’s same-store sales growth reached the mid-single digits last week and improved each week since the initial impact from Cyclospora.
• The firm raised its price target on Cava to $95 from $90 and maintained an ‘Outperform’ rating.
• KeyBanc said Cava’s sales remained positive and continued to recover despite a moderation tied to industry-wide food safety concerns due to Cyclospora.

Cava Group (CAVA) shares were headed for their best single-day gain in five months as Wall Street highlighted improving sales trends following a Cyclospora-related slowdown.

According to TheFly, Mizuho analysts said Cava’s commentary on the near-term impact of Cyclospora in the current quarter to date has “effectively addressed” investor fears.

Cava shares were up more than 12% in Wednesday’s opening trade. CAVA was among the top trending tickers on Stocktwits at the time of writing.

Analysts Point To CAVA’s Improving Sales Trends

RBC Capital raised its price target on Cava to $95 from $90 and maintained an ‘Outperform’ rating. The firm said Cava’s second quarter (Q2) results came in ahead of expectations, while management’s quarter-to-date commentary was better than feared. Same-store sales growth reached the mid-single digits last week and improved each week since the initial impact from Cyclospora, RBC said.

Wolfe Research raised its price target to $82 from $79 and maintained an ‘Outperform’ rating. Analyst Margaret-May Binshtok noted that Cava reported 9% comparable sales growth, above the Street’s 7.2% estimate, along with an earnings before interest, taxes, depreciation, and amortization (EBITDA) beat.

Wolfe noted that guidance was reaffirmed despite the quarter-to-date traffic decline tied to Cyclospora and described the outlook as conservative.

KeyBanc said Cava’s same-store sales and adjusted EBITDA were better-than-expected, adding that while trends moderated at the end of Q2 and beginning of Q3 due to industry-wide food safety issues, sales remained positive and continued to recover.

The firm lowered its price target to $95 from $110 but maintained an ‘Overweight’ rating.

Wall Street Sees Room For CAVA To Rebound

TD Cowen lowered its price target to $85 from $100 while maintaining a ‘Buy’ rating. The firm said a modest disruption from industry-wide Cyclospora concerns over the past month led Cava to conservatively reiterate its 2026 guidance.

TD Cowen maintained its 7% 2026 same-store sales target, citing the rebound in recent weeks, strength in Q2 and the company’s available sales levers.

Analysts at Mizuho lowered their price target to $70 from $85 and maintained a ‘Neutral’ rating.

CAVA CEO Addresses Cyclospora Impact

Cava CEO Brett Schulman said during a post-earnings call that the company saw near-term sales impacts as broad concerns around lettuce and fresh produce consumption emerged following the Cyclospora outbreak. He noted that Cava does not source leafy greens from Mexico and does not serve iceberg lettuce.

Schulman said same-restaurant sales have since begun to rebound, which he attributed to the underlying strength of the Cava brand. He added that the company has not seen any immediate impact from the recent Salmonella outbreak and does not source from the farms associated with it.

“We know consumer trust in the food system does not come easy right now,” Schulman said, adding that Cava continues to consult its food safety advisory council to monitor the situation.

Cava reported earnings per share (EPS) of $0.19 in Q2 on revenue of $365.4 million, while Wall Street expected an EPS of $0.18 on revenue of $360.1 million, according to Fiscal.ai data.

What Retail Traders Think Of CAVA Stock

Retail sentiment on Stocktwits around CAVA trended in the ‘extremely bullish’ territory with message volumes at ‘extremely high’ levels at the time of writing.

CAVA stock is up 17% year-to-date, but down 19% over the past 12 months. The Vanguard Morningstar Total Stock Market ETF (VTI) is up 21% over the past 12 months, while the Vanguard Morningstar Small-Cap Growth ETF (VBK) is up 28%.

Also See: SNDK Unveils 33% Faster 3D Flash Memory Technology To Keep Pace With AI Demand

For updates and corrections, email newsroom[at]stocktwits[dot]com.