10 Stocks with Insanely High PE Ratios Insiders Are Selling

7. CAVA Group, Inc. (NYSE:CAVA)

P/E Ratio: 87.10

Insider Transaction: -37.07%

Based in Washington, D.C., CAVA Group, Inc. (NYSE:CAVA) is a fast-casual Mediterranean restaurant chain focusing on healthy, customizable meals. The company gains a strong foothold in the sector by operating company-owned locations and producing branded retail items through its vertically integrated model. Its business strategy prioritizes digital innovation, supply chain control, and health-conscious consumer preferences. Market penetration in the suburban regions and menu innovation drive the company’s growth. Food inflation and real estate availability affect the company’s long-term profitability and scalability. CAVA is one of the stocks that insiders are selling.

CAVA Group, Inc. (NYSE:CAVA) ended 2024 with 367 locations, resulting in an 18.8% increase in locations year-over-year. In Q4 2022, this contributed to a 36.8% increase in revenue. Meanwhile, food, beverage, and packaging costs have grown owing to the national rollout of steak, leading to a decrease in net income. For 2025, CAVA Group, Inc. (NYSE:CAVA) anticipates stock-based compensation to reach a new range of $20 million and $22 million, further impacting the company’s margin alongside continued investments in team member wages.

CAVA Group, Inc. (NYSE:CAVA)’s elevated P/E ratio of 87.10 indicates that the stock trades at a price higher than its intrinsic value. At the same time, the surge in insider selling of 37.07% suggests that the executives are possibly trying to capitalize on the elevated share price rather than betting on the future appreciation of their investment.