CAVA Q4 2025 earnings
JavaneseThe fast-casual Mediterranean restaurant chain reported record revenue for fiscal 2025 on Tuesday and is forecasting sales growth for fiscal 2026.
Shares gained nearly 10% in extended trading on Tuesday.
“While there are a lot of factors around us that are putting pressure on us from a margin perspective, our model has allowed us to be very thoughtful and minimize price increases to our guests and consumers in general, which really helps elevate our perception of value,” CFO Tricia Tolivar told CNBC.
Although the company said it saw a decline among younger consumers last quarter, Tolivar said that trend ended in the last three months of the fiscal year.
“We’ve actually seen a tightening in that category and overall [we’re] “We are seeing improvements in our trends across income groups, across age groups, and across different parts of the country,” Tolivar said. “And in fact, we believe that we’ve been able to create a little bit of a bridge in this K-shaped economy where we want to be accessible to everyone, and we’re doing our best to make sure that our amazing cuisine and incredible hospitality is available to all of our customers across the country.”
Some of Cava’s best-performing restaurants are in markets with lower median household income, he added.
The restaurant chain reported same-store sales rose 0.5% in the fiscal fourth quarter, compared to Wall Street forecasts for a 1.1% decline, according to StreetAccount. Much of this growth was driven by menu prices and product mix, partially offset by a 1.4% decline in foot traffic, the company said.
Tolivar said Cava increased prices by about 1.7% at the beginning of 2025, with “very modest increases” expected in 2026.
The company also recorded 72 net new restaurant openings in fiscal 2025 at a total of 439 locations.
Here is Cava’s performance in the match Period ending December 28 Compared to Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: 3 cents expected versus 4 cents
- Revenues: $275 million while the expectation was $268 million
Cava reported net income of $4.9 million, or 4 cents per share, in the fourth quarter, compared to $78.6 million, or 66 cents per share, in the fourth quarter of 2024.
Revenue of $275 million was up nearly 21% year over year.
For the full fiscal year, the company reported record revenue of more than $1 billion, a growth of more than 20% compared to the previous year. Sales of the same restaurant increased by 4% during the year.
“Our momentum and market share gains underscore the strength of our value proposition and reflect how deeply our brand resonates with today’s increasingly savvy consumer,” CEO Brett Schulman said in a statement. he said.
Cava said he expects 74 to 76 net new restaurant openings for fiscal 2026, as well as 3% to 5% growth in same-store sales.
Tolivar said the company expects strong results from upcoming menu additions, including a salmon offering that will be Cava’s first foray into the seafood industry.
