diggingThe Mediterranean fast-casual restaurant chain on Tuesday reported record revenue for fiscal 2025 and forecast sales growth for fiscal 2026.
Shares closed more than 25% higher on Wednesday.
“While there are many factors around us that are creating pressures from a margin perspective, our model has allowed us to be very thoughtful and minimize price increases for our guests and for consumers in general, which really helps elevate our perception of value,” chief financial officer Tricia Tolivar told CNBC.
Although the company said last quarter that it saw a decline among younger consumers, Tolivar said that trend came to an end in the final three months of its fiscal year.
“In fact, we saw a firming in that category and, in general, [we’re] “We are seeing an improvement in our trends in income cohorts, age cohorts and different parts of the country,” Tolivar said. “And in fact, we think there's a little bridge that we've been able to create in this K-shaped economy, where we want to be accessible to everyone, and we're doing everything we can to ensure that our incredible cuisine and hospitality is available to all customers across the country.”
He added that some of Cava's best-performing restaurants are in markets where median household incomes are lower.
The restaurant chain reported that same-store sales rose 0.5% in its fiscal fourth quarter, compared with Wall Street estimates of a 1.1% decline, according to StreetAccount. Much of that growth was due to menu pricing and product mix, and was partially offset by a 1.4% decline in foot traffic, the company said.
Tolivar said Cava raised prices by around 1.7% in early 2025 and that 2026 would see “very modest increases.”
The company also recorded 72 net new restaurant openings in fiscal 2025 for a total of 439 locations.
Here's how Cava performed in the period ending December 28 compared to what Wall Street expected, according to a survey of analysts by LSEG:
- Earnings per share: 4 cents versus 3 cents expected
- Revenue: $275 million vs. $268 million expected
In the fourth quarter, Cava reported net income of $4.9 million, or 4 cents per share, compared with $78.6 million, or 66 cents per share, in the fourth quarter of 2024.
Revenue of $275 million marked an increase of nearly 21% year over year.
For the full fiscal year, the company reported record revenue exceeding $1 billion, growth of more than 20% compared to the previous year. Comparable sales during the year increased 4%.
“We believe our momentum reflects more than just expansion,” CEO Brett Schulman said on a call with analysts. “This indicates that our value proposition is resonating with today's increasingly discerning consumer and, as guests become more intentional with their spending, they are choosing brands like Cava that offer real differentiation through bold flavors, healthy food and hospitality that creates a meaningful human connection.”
For fiscal 2026, Cava said he expects between 74 and 76 net new restaurant openings, along with same-store sales growth of 3% to 5%.
Tolivar said the company expects good results with its upcoming menu additions, including a salmon offering, which will mark Cava's entry into the seafood market.
