Cava Shares Rise After Fourth-Quarter Same-Store Sales Top Estimates

Cava (NYSE: CAVA) reported fourth-quarter results that exceeded Wall Street expectations and issued fiscal 2026 guidance projecting continued sales growth, sending its shares up more than 20% in midday trading Wednesday.

For the quarter ended Dec. 28, the fast-casual Mediterranean chain posted revenue of $275 million, compared with analyst estimates of $268 million, according to LSEG. Adjusted earnings were 4 cents per share, topping expectations of 3 cents. Net income totaled $4.9 million, or 4 cents per share, versus $78.6 million, or 66 cents per share, in the year-ago period.Quarterly revenue increased nearly 21% from a year earlier. Same-restaurant sales rose 0.5% in the fiscal fourth quarter, compared with StreetAccount estimates calling for a 1.1% decline. 

The company said the increase was largely driven by higher menu prices and product mix, partially offset by a 1.4% decline in traffic.

Chief Financial Officer Tricia Tolivar said Cava raised menu prices by about 1.7% at the beginning of 2025 and expects only modest additional increases in 2026. She added that trends among younger consumers, which had softened in prior periods, improved during the final three months of the fiscal year.

Tolivar said performance strengthened across income and age groups, and that some of the company’s strongest restaurants are located in markets with lower median household incomes. She described the brand as serving as a “bridge” across different segments of consumers in what she called a “K-shaped economy.”For the full fiscal year 2025, Cava reported revenue exceeding $1 billion for the first time, representing growth of more than 20% from the prior year. Same-restaurant sales increased 4% for the year. The company opened 72 net new locations during the period, bringing its total footprint to 439 restaurants.

Chief Executive Officer Brett Schulman told analysts that the company’s recent performance reflects both expansion and continued demand for its offerings, citing differentiation through menu items and hospitality.

Looking ahead, Cava said it expects to open between 74 and 76 net new restaurants in fiscal 2026 and forecast same-store sales growth of 3% to 5%. Management also pointed to upcoming menu additions, including the introduction of salmon, which will mark the company’s entry into seafood.

About Cava

Cava (NYSE: CAVA) is a U.S.-based fast-casual restaurant company specializing in Mediterranean-inspired cuisine. The company operates hundreds of locations across the United States, offering customizable bowls, pitas, and salads, and has expanded through a combination of organic growth and acquisitions.

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.