Cava Stock Jumps on Record Revenue & Upbeat 2026 Outlook

Cava Group, the fast-casual Mediterranean restaurant chain, reported record revenue for fiscal year 2025 and offered optimistic sales projections for 2026, sending its shares up roughly 10% in after-hours trading on Tuesday. The company’s performance signals resilience in the face of macroeconomic pressures and a potential shift in consumer spending patterns.

The positive results come after a period of uncertainty for Cava, which, in August 2025, lowered its full-year forecast following weaker-than-expected second-quarter same-store sales growth of 2.1%. At the time, CEO Brett Schulman attributed the slowdown to challenging year-over-year comparisons, stemming from the successful launch of its steak offering in the prior year, and a broader softening in consumer demand. However, recent data suggests a stabilization, and even a slight rebound, in key consumer segments.

For the fiscal year ended December 28, 2025, Cava reported revenue exceeding $1 billion, representing growth of over 20% compared to the previous year. Same-restaurant sales increased by 4% over the same period. In the fourth quarter alone, the company recorded net income of $4.9 million, or 4 cents per share, a decrease from the $78.6 million, or 66 cents per share, reported in the fourth quarter of 2024. Revenue for the quarter reached $275 million, nearly 21% higher year-over-year.

The fourth-quarter earnings per share of 4 cents exceeded Wall Street’s expectations of 3 cents, while revenue of $275 million surpassed the anticipated $268 million, according to LSEG analyst estimates. Same-store sales rose 0.5% in the fourth quarter, a notable improvement compared to the 1.1% decline analysts had predicted.

CFO Tricia Tolivar emphasized the company’s ability to manage pricing strategies effectively amidst inflationary pressures. “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,” she told CNBC. Cava raised prices by approximately 1.7% at the beginning of 2025 and anticipates “very modest increases” in 2026.

A key aspect of Cava’s recent success appears to be a resurgence in spending among younger consumers, a demographic that had previously shown signs of pulling back. Tolivar noted that the trend of declining spending among younger customers reversed in the final three months of the 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,” she said. The company believes it has successfully positioned itself to appeal to a broad range of consumers, offering value without compromising on quality or experience.

Interestingly, Cava’s best-performing restaurants are located in markets with lower median household incomes, suggesting that its value proposition resonates particularly well with budget-conscious consumers. This observation supports the company’s strategy of being “accessible for everyone,” as Schulman articulated in a call with analysts.

The company’s growth trajectory remains strong, with 72 net new restaurant openings in fiscal 2025, bringing the total number of locations to 439. For fiscal year 2026, Cava projects 74 to 76 additional net new restaurant openings, alongside anticipated same-store sales growth of 3% to 5%.

Looking ahead, Cava is planning to introduce several new menu items, including a salmon offering, marking its first foray into seafood. Tolivar expressed confidence that these additions will contribute to continued strong performance. The company’s ability to innovate and adapt its menu to evolving consumer preferences will be crucial for sustaining its growth momentum.

Cava’s recent performance and outlook suggest that the fast-casual restaurant chain is navigating the challenging macroeconomic environment effectively. By focusing on value, innovation, and strategic expansion, Cava appears well-positioned to capitalize on opportunities in the evolving dining landscape. The company’s success underscores the importance of understanding and responding to shifting consumer behaviors, particularly in an economic climate characterized by uncertainty and fluctuating spending patterns.

The company’s ability to maintain profitability while minimizing price increases is a key differentiator. This strategy, coupled with its expanding footprint and innovative menu offerings, positions Cava as a compelling player in the competitive fast-casual dining sector.