CAVA Group surges on revenue beat, robust traffic growth

Investing.com -- CAVA Group Inc (NYSE: CAVA) reported second quarter results that exceeded revenue expectations, driving shares up as much as 13% in after-hours trading Tuesday as the Mediterranean fast-casual chain demonstrated continued momentum in same-restaurant sales and traffic growth.

The company posted adjusted earnings per share of $0.19, matching analyst estimates, while revenue reached $365.4 million, surpassing the consensus estimate of $360.1 million. Revenue grew 31.3% YoY from $278.2 million in the prior year quarter. Same-restaurant sales increased 9.0%, driven by guest traffic growth of 5.3% and menu price and product mix contributing 3.7%. The company opened 17 net new restaurants during the quarter, bringing its total restaurant count to 476, a 19.6% increase YoY.

Restaurant-level profit margin came in at 25.7%, down 60 basis points from 26.3% in the prior year quarter. The decrease was driven by input costs associated with the launch of Pomegranate Glazed Salmon on April 20, 2026, a higher mix of third-party delivery, and incremental wage investments, partially offset by leverage from higher sales.

Net income reached $23.0 million, up 25.3% from $18.4 million in the second quarter of fiscal 2025. Adjusted EBITDA grew 30.0% to $54.7 million, representing 14.9% of revenue.

CAVA reaffirmed its fiscal full-year 2026 guidance, projecting 75 to 77 net new restaurant openings, same-restaurant sales growth of 4.5% to 6.5%, and adjusted EBITDA of $181.0 million to $191.0 million. The midpoint of the adjusted EBITDA guidance of $186.0 million aligns with the company's continued expansion trajectory.

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