Cava, the fast-casual Mediterranean restaurant chain, reported record-breaking revenue for fiscal year 2025 on Tuesday and forecast sales growth for fiscal year 2026.
Shares closed more than 25% higher on Wednesday.
“While there are a lot of factors around us that are creating pressures from a margin perspective, our model has allowed us to be very thoughtful and minimize price increases to our guests and to consumers in general, which really helps elevate our value perception,” Chief Financial Officer Tricia Tolivar told CNBC.
Though the company said last quarter that it saw a pullback among younger consumers, Tolivar said that trend came to an end in the final three months of its fiscal year.
“We actually saw firming in that category, and overall [we’re] seeing improvement in our trends across income cohorts, age cohorts, different parts of the country,” Tolivar said. “And in fact, we believe there’s a little bit of a bridge that we’ve been able to create in this K-shaped economy, where we want to be accessible for everyone, and we’re doing our best to ensure that our amazing culinary and incredible hospitality is there for all customers across the country.”
She added that some of Cava’s best-performing restaurants are in markets where median household incomes are lower.
The restaurant chain reported same-store sales up 0.5% in its fiscal fourth quarter, compared to Wall Street estimates of a 1.1% decline, according to StreetAccount. Much of that growth was thanks to menu prices and product mix, and partially offset by a 1.4% decline in foot traffic, the company said.
Tolivar said Cava raised prices about 1.7% at the beginning of 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 ended Dec. 28 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: 4 cents vs. 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 to $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-breaking revenue surpassing $1 billion, a growth of more than 20% compared to the year prior. Same-restaurant sales for the year increased by 4%.
“We believe our momentum reflects more than just expansion,” CEO Brett Schulman said on a call with analysts. “It signals that our value proposition is resonating with today’s increasingly discerning consumer, and as guests become more intentional with their spend, they are choosing brands like Cava that deliver real differentiation through bold flavors, healthy food and hospitality that creates meaningful human connection.”
For fiscal year 2026, Cava said it expects 74 to 76 net new restaurant openings, in…
Read More: CAVA Q4 2025 earnings
