Cava Group (NYSE: CAVA) reported fourth-quarter earnings on Monday that topped Wall Street expectations, driven by menu price increases, improved product mix, and continued restaurant expansion .
Q4 Financial Highlights
| Metric | Q4 2025 | vs. Expectations |
|---|---|---|
| Revenue | $275 million | Beat $268.6M estimate |
| EPS | $0.04 | Beat $0.03 estimate |
| Same-Store Sales | +0.5% | Beat -1.1% estimate |
| Net Income | $4.9 million | — |
Revenue grew 21% year-over-year to $275 million, while adjusted EBITDA reached $25.8 million . The company opened 24 net new restaurants during the quarter, bringing its total to 439 locations, a 19.6% increase year-over-year .
What Drove Growth
Same-store sales increased 0.5%, defying expectations of a 1.1% decline . This growth came despite a 1.4% drop in guest traffic, offset by a 1.9% increase from menu price hikes and improved product mix .
CFO Tricia Toliver addressed the economic backdrop, noting that in a “K-shaped polarized economy,” Cava is serving as a “bridge across all income levels.” She added that stores in regions with lower median household incomes are delivering strong results, and concerns about reduced spending among younger consumers eased in the fourth quarter .
2026 Outlook
For fiscal year 2026, Cava expects:
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74 to 76 net new restaurant openings
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Same-restaurant sales growth of 3.0% to 5.0%
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Adjusted EBITDA of $176 million to $184 million
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Restaurant-level profit margin of 23.7% to 24.2%
Margin Pressures
Restaurant-level profit margin decreased 100 basis points to 21.4% due to higher third-party delivery mix, technology investments, tariff impacts, and the limited-time chicken shawarma offering . Food costs rose partly due to tariffs, though the company offset some pressure through sales leverage .
Stock Reaction
Cava shares jumped 8% in after-hours trading following the report . The stock has been volatile over the past year, trading between $43.41 and $108.98 .
