CAVA Group Inc. (NYSE:CAVA) stock is trading higher by about 1% in Wednesday’s premarket session. The move follows an 8.93% drop Tuesday as traders look for a rebound in the beaten-down restaurant stock.

Nasdaq futures rose 0.46%, while S&P 500 futures gained 0.21%.

Dining Traffic Weakness Hits CAVA

Tuesday’s decline followed a Placer report showing weaker U.S. dining traffic in August.

Dining-chain visits fell 2.4% year over year. By comparison, retail visits rose 0.3%, although growth slowed from 1.7% in July.

Calendar timing contributed to the weakness. Labor Day fell on Sept. 7 this year versus Sept. 1 in 2025. That shifted the holiday weekend out of August and likely weighed more heavily on restaurant traffic.

Consumers also faced higher costs. Food-away-from-home prices rose 3.4% year over year, compared with a 2.2% increase for groceries. Consumer sentiment also declined from July.

Those trends could pressure restaurant sales and margins as operators continue to face elevated labor and operating costs.

Technical Analysis

Wednesday’s early gain appears tied to firmer equity futures and a potential technical rebound after Tuesday’s sharp selloff.

However, CAVA remains well below its major moving averages. That suggests the move is a rebound attempt rather than a confirmed trend reversal.

CAVA remains in a clear downtrend. The stock trades 20.5% below its 20-day simple moving average, 22.6% below its 50-day SMA and 30.1% below its 200-day SMA.

The 20-day SMA also remains below the 50-day SMA, reinforcing the bearish short-term trend.

However, the relative strength index sits at 26. Readings below 30 typically indicate oversold conditions. That can create conditions for a short-term rebound, although it does not signal a trend reversal on its own.

The stock also formed a death cross in August when its 50-day SMA fell below the 200-day SMA. That remains a longer-term technical headwind.

Key resistance sits near $56. Support is around $45.50, close to the lower end of CAVA’s 52-week range.

Analyst Outlook

CAVA carries a Buy consensus rating with an average price forecast of $88.29.

Seaport Global initiated coverage Wednesday with a Buy rating and a $58 price forecast. DA Davidson maintained a Neutral rating in August and lowered its forecast to $75. Guggenheim maintained a Buy rating while cutting its forecast to $95.

The stock trades at a price-to-earnings ratio of about 89.3, reflecting a premium valuation.

Benzinga Edge Rankings

The Benzinga Edge scorecard highlights weak momentum for CAVA.

The stock has a Momentum score of 3.74, reflecting its steep decline and position below major moving averages. Its Value score stands at 38.96, while the stock continues to trade at a premium earnings multiple.

Overall, the technical setup remains under pressure despite oversold conditions. Traders will be watching whether Wednesday’s rebound can gain traction and whether CAVA can eventually reclaim its short-term moving averages.

Price Action

CAVA Group shares were up 1.11% at $50.54 in Wednesday’s premarket trading, according to Benzinga Pro data.

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