Piper Sandler has raised its price target on Cava Group Inc (NYSE:CAVA) to $85 from $71 and maintained an Overweight recommendation on the stock following the company’s latest results and guidance. Shares climbed about 15% to $78.90 in reaction to the announcement, pushing year-to-date performance to a gain of more than 15%.
The firm pointed to Cava’s fourth-quarter fiscal 2025 same-store sales result of 0.5%, which outperformed the consensus estimate of negative 1%. Cava released those results after the market close.
Alongside the quarter, the company provided fiscal 2026 same-store sales guidance in a range of 3.0% to 5.0%, which matched pre-print consensus of 3.0%. Company management also indicated that quarter-to-date same-store sales are running above the guidance range of 3.0% to 5.0%.
Piper Sandler’s view
Piper Sandler emphasized Cava’s modest same-store sales outperformance and noted that the company plans to implement 1.4% menu pricing this year. The analyst included the following commentary in its note: "This evening, post close, CAVA reported its 4Q25 results. For the quarter, the SSS result of +0.5% came in above the consensus estimate of down 1% and above our sense of buyside investor expectations as well."
The firm added: "We note that CAVA will only be taking +1.4% menu pricing this year, which is a welcome respite from what we continue to see almost everywhere else in the industry; and which makes us feel good about the durability of traffic outperformance here."
Market and analyst reactions
Following Cava’s report and management commentary, multiple brokerages adjusted their outlooks. UBS raised its price target to $75 while retaining a Neutral rating. Needham increased its target to $90, citing the company’s fourth-quarter performance and 2026 guidance as signs of brand strength. TD Cowen also raised its target to $90, pointing to the better-than-expected guidance. Telsey Advisory Group boosted its target to $88, referencing expectation of long-term upside tied to the company’s multi-year unit growth plan. Bernstein raised its target to $84 and highlighted loyalty engagement and operational improvements as drivers for sustained momentum.
Collectively these moves illustrate a wave of analyst updates following the quarter that reflected growing confidence among several firms in Cava’s strategic direction and growth prospects based on the reported results and management commentary.
What the company reported
Cava’s fourth-quarter results included a same-store sales number that beat consensus and adjusted EBITDA that was characterized as stronger-than-expected by multiple analysts. Management’s fiscal 2026 same-store sales guidance of 3.0% to 5.0% was in line with pre-print expectations and, according to the company, early quarter sales trends are tracking above that range.
Separately, Piper Sandler highlighted the company’s restrained menu pricing plan of 1.4% for the year as notable relative to broader industry pricing trends, suggesting that limited price increases could support continued traffic resilience.
Bottom line
Piper Sandler’s price-target increase and the subsequent stock move reflect investor and analyst attention on Cava’s modest same-store sales beat, conservative menu pricing outlook, and management’s forward guidance. The subsequent round of target increases from other firms underscores a broader reassessment of the company’s near-term performance and strategic positioning based on the fourth-quarter report and fiscal 2026 guidance.