Cava stock price soars 9%, annual revenue surpasses $1 billion for the first time

2026-02-25 09:09:44

Washington - Cava Group Inc. (NYSE:CAVA) reported fourth-quarter results that exceeded analyst expectations, despite a challenging dining industry environment. The Mediterranean fast-casual chain demonstrated continued growth momentum, pushing its stock up 9.7%.

The company posted an adjusted earnings of $0.04 per share for the quarter, surpassing the consensus estimate of $0.00. Revenue reached $275 million, significantly above the market expectation of $228.3 million, representing a 21.2% increase from $225.1 million in the same period last year. Same-store sales grew by 0.5%, with menu pricing and product mix contributing 1.9%, partially offset by a 1.4% decline in customer traffic.

For fiscal 2026, Cava issued guidance expecting same-store sales growth of 3.0% to 5.0%, with a median of 4.0%, in line with typical industry expectations. The company anticipates net new store openings of 74 to 76 locations, with adjusted EBITDA expected to be between $176 million and $184 million, with a median of $180 million. Restaurant-level profit margins are projected to be between 23.7% and 24.2%.

Co-founder and CEO Brett Schulman said, “2025 is a milestone year for CAVA. We continue to pursue our mission of bringing genuine, healthy, and human-centered food, while expanding our business with long-term, conscious focus. In fiscal 2025, we achieved our first-ever full-year revenue exceeding $1 billion, with a 22.5% increase.”

In fiscal 2025, Cava added 72 new restaurants, bringing the total to 439 locations. Full-year revenue grew 22.5% to $1.1693 billion, with same-store sales increasing 4.0%. Restaurant-level profit margins were 24.4%, down 60 basis points from the previous year, mainly due to rising food costs related to tariffs and new menu items, increased third-party delivery share, and higher wage investments.

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