Cava Group shares jump as revenue and restaurant traffic beat expectations

Cava Group Inc (NYSE:CAVA) reported second-quarter gross supra Wall Street forecasts arsenic beardown lawsuit postulation and same-restaurant income helped support maturation momentum, sending the shares astir 10% higher successful U.S. premarket trading connected Wednesday.

The Mediterranean fast-casual edifice concatenation posted adjusted net per stock of $0.19, successful enactment with expert expectations. Revenue reached $365.4 million, exceeding the statement estimation of $360.1 cardinal and rising 31.3% from $278.2 cardinal successful the aforesaid 4th a twelvemonth earlier.

Same-restaurant income emergence 9%

Same-restaurant income accrued 9.0% during the quarter, supported by a 5.3% emergence successful impermanent traffic. Menu pricing and merchandise premix contributed different 3.7% to the increase.

Cava continued expanding its edifice network, opening 17 nett caller locations during the period. That brought its full edifice number to 476, representing year-on-year maturation of 19.6%.

"Our 2nd 4th results underscore the continued spot of our category-defining marque and the resonance of our worth proposition with today's consumer," said Brett Schulman, Co-Founder and CEO. "This strength, combined with the powerfulness of our portion economical model, gives america assurance not lone successful our momentum today, but successful the agelong runway that lies ahead."

Restaurant margins easiness contempt nett maturation

Restaurant-level nett borderline declined by 60 ground points to 25.7%, compared with 26.3% successful the prior-year quarter.

The institution attributed the contraction partially to input costs related to the April 20, 2026 motorboat of Pomegranate Glazed Salmon. A greater proportionality of third-party transportation orders and further concern successful wages besides weighed connected margins, though stronger income provided a partial offset.

Net income accrued 25.3% to $23.0 cardinal from $18.4 cardinal successful the 2nd 4th of fiscal 2025.

Adjusted EBITDA climbed 30.0% twelvemonth connected twelvemonth to $54.7 million, equivalent to 14.9% of revenue.

Cava maintains full-year 2026 guidance

Cava reaffirmed its outlook for fiscal 2026, continuing to forecast betwixt 75 and 77 nett caller edifice openings.

The institution expects same-restaurant income maturation of 4.5% to 6.5%, portion adjusted EBITDA is projected astatine betwixt $181.0 cardinal and $191.0 million. The midpoint of the EBITDA scope stands astatine $186.0 cardinal arsenic Cava continues its enlargement strategy.

Vital Knowledge analysts noted that the results were coagulated but suggested the humble borderline unit and unchanged guidance could bounds enthusiasm successful the adjacent term.

"[T]his isn't a atrocious report, but the (slight) borderline softness, coupled with the information that guidance was lone reiterated, mightiness beryllium underwhelming successful the near-term," analysts astatine Vital Knowledge said successful a note.

Cava Group banal terms