Assuming that you live on that for roughly 9 months that's $1,645/month. Assume 90 meals for the month and call the apartment $500/month ($1500 total for the 3 students, which seems to be about what an apartment runs in Davis) that's about $12.75/meal. That's a bit high for cafeteria food, but not outrageous.

You could definitely save money by living off campus and cooking your own meals, but probably not as much as you would like. It also means you have a commute to campus, which is a drag.