CAVA Group Inc. reported fourth‑quarter 2025 results that beat expectations, with revenue rising 21.2% year‑over‑year to $272.8 million and earnings per share of $0.04 versus the $0.03 consensus estimate. Same‑restaurant sales grew 0.5% while foot traffic dipped 1.4%, and the company opened 24 new restaurants, bringing its total count to 439. The restaurant‑level profit margin was 21.4%, a 100‑basis‑point decline from the prior year, reflecting higher food, beverage, and packaging costs and increased wage investments.
The revenue beat was driven by a combination of new‑unit expansion and modest same‑restaurant sales growth. The 24 net new restaurants added 21.2% of the quarter’s revenue, while the 0.5% lift in same‑restaurant sales offset a 1.4% drop in foot traffic, indicating that pricing and product mix were effective in maintaining revenue per visit.
Margin compression was largely a cost‑inflation story. Higher food, beverage, and packaging expenses, coupled with wage investments, eroded the 21.4% restaurant‑level margin from the prior year’s 22.4%. Despite this, the company’s unit economics remain strong, as the CFO noted that the model “continues to be strong, and we remain confident in the underlying structural strength of the business.”
For fiscal 2026, CAVA guided for same‑restaurant sales growth of 3%‑5%, a restaurant‑level profit margin of 23.7%‑24.2%, and adjusted EBITDA of $176‑$184 million, while maintaining a pre‑opening cost range of $19.5‑$20 million. These targets signal management’s confidence that cost pressures will ease and that the company can sustain profitable expansion.
Management highlighted the broader context of the results: “For the first time in our history, revenue surpassed $1 billion for a full fiscal year in 2025, growing 22.5% for the year. We opened 72 net new restaurants and delivered same‑restaurant sales growth of 4.0%.” The company ended the quarter with zero debt, a 439‑restaurant footprint, and a strategic focus on expanding into the Midwest, launching new menu items such as a seafood offering, and enhancing its loyalty program with tiered status levels.
The market reacted positively to the results, reflecting confidence in CAVA’s growth trajectory and unit economics, and underscoring the company’s ability to navigate cost pressures while expanding its footprint.
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