Cava, the fast-casual Mediterranean restaurant chain, announced impressive financial results for fiscal year 2025, breaking records and projecting notable growth for 2026. Following the announcement, shares surged nearly 10% in after-hours trading on Tuesday.
CFO Tricia Tolivar discussed the company’s strategy during an interview with CNBC, highlighting their ability to manage margin pressures while keeping price increases to a minimum for consumers. “Our model has allowed us to be very thoughtful and minimize price increases… which really helps elevate our value perception,” she stated. Despite a previous pullback in interest from younger consumers, Tolivar revealed that this trend reversed in the last quarter of the fiscal year. “We saw firming in that category… and overall we’re seeing improvement across income cohorts and age groups,” she added.
Notably, some of Cava’s top-performing locations are situated in areas with lower median household incomes, reflecting the chain’s commitment to accessibility. During the fourth quarter, same-store sales increased by 0.5%, defying Wall Street’s expectations of a 1.1% decline, according to StreetAccount. This growth was attributed largely to adjustments in menu pricing and product offerings, although foot traffic saw a 1.4% decline.
In early 2025, Cava implemented a modest price increase of approximately 1.7%, with plans for “very modest increases” in 2026. The company also expanded its footprint significantly, with 72 new restaurant openings in fiscal 2025, bringing the total number of locations to 439.
Looking deeper into Cava’s financials, the company posted earnings of 4 cents per share, slightly surpassing estimates of 3 cents. Revenue reached $275 million, outpacing expectations of $268 million. While the fourth quarter net income dropped to $4.9 million from $78.6 million in the same period last year, the revenue reflected a substantial year-over-year growth of nearly 21%. Over the entire fiscal year, Cava reported record revenue exceeding $1 billion, marking a 20% increase and a 4% rise in same-restaurant sales.
CEO Brett Schulman emphasized Cava’s competitive edge, stating, “Our momentum and market share gains underscore the strength of our value proposition and reflect how deeply our brand is resonating with today’s increasingly discerning consumer.”
For fiscal year 2026, Cava forecasts the opening of 74 to 76 new locations, alongside anticipated same-store sales growth of 3% to 5%. Tolivar expressed optimism about upcoming menu offerings, mentioning an exciting new salmon dish that represents the brand’s entry into seafood.
Cava’s strategic approach to pricing, its emphasis on community engagement, and its commitment to culinary innovation position it well for ongoing success in the evolving dining landscape.
Original Source: https://www.cnbc.com/2026/02/24/cava-q4-2025-earnings.html
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Publish Date: 2026-02-25 03:47:00
