Nepsis Bets on CAVA's Future Growth Plan With $2.9 Million Purchase

Nepsis Inc. disclosed in a January 14, 2026, SEC filing that it increased its position in CAVA (NYSE:CAVA), acquiring 52,776 additional shares in a trade estimated at $2.94 million based on quarterly average pricing.

What Happened

According to a Securities and Exchange Commission (SEC) filing dated January 14, 2026, Nepsis Inc. acquired 52,776 additional shares of CAVA. The estimated transaction value was $2.94 million, calculated using the average closing price during the fourth quarter of 2025. The total value of the CAVA position rose by $2.88 million from the previous quarter, reflecting both share purchases and market price changes.

What Else to Know

Nepsis Inc. increased its stake in CAVA, bringing its holding to 176,694 shares, or 3.2% of its 13F reportable assets under management as of December 31, 2025.

Top holdings after the filing:

• NASDAQ: UTHR: $21.32 million (6.6% of AUM)
• NYSE: RLI: $18.50 million (5.7% of AUM)
• NYSE: DVN: $17.12 million (5.3% of AUM)
• NYSE: CB: $16.83 million (5.2% of AUM)
• NASDAQ: AMD: $16.64 million (5.1% of AUM)

As of January 13, 2026, CAVA shares were priced at $68.52, down 38.3% over the past year; shares have lagged the S&P 500 by 57.61 percentage points.

Company Overview

Company Snapshot

• Offers Mediterranean-inspired fast-casual dining, including salads, bowls, pitas, dips, and dressings, with additional retail sales through grocery channels.
• Operates a vertically integrated business model, generating revenue from both restaurant operations and branded product sales in supermarkets.
• Serves a broad customer base seeking healthy, customizable meals, and leverages a growing national footprint to expand its market presence.

CAVA Group, Inc. is a leading fast-casual restaurant operator specializing in Mediterranean cuisine, with a multi-channel approach that includes both dine-in locations and retail product distribution. The company leverages its brand to capture demand from consumers seeking healthy and customizable meals, supported by a growing national footprint. Strategic integration of restaurant and retail channels positions CAVA to benefit from evolving consumer preferences and scale efficiencies in the competitive restaurant industry.

What This Transaction Means For Investors

This recent transaction by Nepsis, a Minnesota-based investment advisory firm, represents a significant acquisition of CAVA stock. Here's what investors need to know.

First, CAVA stock has not performed well over the last 12 months. Shares have declined by approximately 37%, vastly underperforming the S&P 500. What's more, this recent decline represents a significant setback to a stock that soared in the first year following its initial public offering (IPO) in June 2023.

Nonetheless, there are signs that CAVA, and its stock, may be due for a turnaround. On the business front, the company has launched a new menu, which has been greeted with optimism by many sell-side analysts. Furthermore, the company remains firmly in 'growth mode' -- rapidly expanding its footprint of restaurants. CAVA expects to have more than 1,000 restaurants in operation by 2032, up from around 450 today.

As for CAVA stock, it remains expensive, with a forward price-to-earnings (P/E) ratio of 124x. While that figure is down drastically from its one-year high of 240x, it remains very high in absolute terms. Consequently, CAVA remains a stock only for aggressive growth investors. If the company fails to deliver on its anticipated growth, its share price could tumble. At any rate, this recent transaction indicates that at least some institutional investors believe that CAVA's long-term growth story remains intact, which makes it a stock worth considering for growth investors willing to accept some significant downside risk.

Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Cava Group, and United Therapeutics. The Motley Fool has a disclosure policy.