As you might know, CAVA Group, Inc. (NYSE:CAVA) just kicked off its latest third-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 4.6% to hit US$244m. CAVA Group also reported a statutory profit of US$0.16, which was an impressive 42% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for CAVA Group

Taking into account the latest results, the consensus forecast from CAVA Group's 13 analysts is for revenues of US$1.19b in 2025. This reflects a sizeable 30% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 30% to US$0.61. Before this earnings report, the analysts had been forecasting revenues of US$1.14b and earnings per share (EPS) of US$0.53 in 2025. So it seems there's been a definite increase in optimism about CAVA Group's future following the latest results, with a nice increase in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for CAVA Group 27% to US$157on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic CAVA Group analyst has a price target of US$195 per share, while the most pessimistic values it at US$110. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of CAVA Group'shistorical trends, as the 23% annualised revenue growth to the end of 2025 is roughly in line with the 22% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.8% per year. So it's pretty clear that CAVA Group is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CAVA Group's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on CAVA Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CAVA Group analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for CAVA Group that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.