CAVA approves $100 million share buyback program
The plan, which runs through September 2027, lets CAVA buy back stock through open-market purchases, private deals or trading plans at its own discretion
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CAVA Group's board has approved a program to repurchase up to $100 million of its common stock, the company said. The authorization expires September 17, 2027, and CAVA said it plans to fund the purchases with existing cash and cash flow from operations.
The company can carry out the buybacks through open-market purchases, privately negotiated deals or Rule 10b5-1 trading plans, with the timing and size left to management's discretion.
In its most recent quarterly report, for the period ended in early August, CAVA posted revenue growth of 31.3% year over year to $365.4 million and same-restaurant sales up 9%, according to data compiled by stockanalysis.com. The company reported a profit of $23 million for the quarter. Chief Executive Brett Schulman said a cyclospora outbreak and salmonella concerns during the period had not affected the business, the data show.
CAVA shares have fallen 40% this year after two consecutive cuts to its sales guidance, most recently when the company lowered its projection for same-store sales growth in 2025 to a range of 3% to 4%, down from an earlier forecast of 4% to 6%. A $100 million buyback against that backdrop signals that management views the stock's decline as overdone rather than a sign of deeper trouble, offering a modestly bullish counterweight to the demand concerns that have weighed on shares.