New York, Feb 25, 2026, 14:57 (ET) — Regular session
CAVA Group, Inc. (CAVA) surged roughly 25% to $84.88 in afternoon trade on Wednesday. Shares kicked off at $78.99, with the session’s range running from $77.94 up to $85.62. (Investing.com)
The jump is notable—restaurant stocks react sharply to even minor changes in traffic or pricing leverage. Investors are watching to see if customers will continue to spend on “better-for-you” options, especially while costs remain elevated and promo activity picks up across the industry.
Cava on Tuesday projected fiscal 2026 same-restaurant sales growth of 3% to 5%, outpacing the 3.16% analysts had penciled in. The company hiked prices 1.4% on select premium items but kept staple bowls unchanged. “Consumer (is) still spending,” CEO Brett Schulman told investors. Cava pointed to commodity and import tariff pressures and set 2026 profit margin guidance at 23.7% to 24.2%. A seafood protein bowl is also on the way before the quarter wraps. Shares jumped roughly 8% in after-hours. (Reuters)
Cava posted a 21.2% jump in fourth-quarter revenue to $272.8 million, with net income landing at $4.9 million. Same-restaurant sales ticked up just 0.5%—price increases and menu mix offset a 1.4% pullback in guest traffic. Store-level profit margin slipped by 100 basis points to 21.4%. For the year, revenue climbed 22.5% to $1.1693 billion. “For the first time in our history, revenue surpassed $1 billion,” Schulman noted. Cava projects 74 to 76 net new restaurant openings for fiscal 2026, with adjusted EBITDA expected between $176 million and $184 million. (Cava Group)
The company submitted its earnings release via a Form 8‑K, according to an SEC filing from Tuesday. Chief Financial Officer Tricia Tolivar signed off on the report. (SEC)
Stocks moved higher Wednesday, with the S&P 500 adding roughly 0.8% and the Nasdaq climbing 1.3%, as heavyweight tech names bolstered the rally. Cava grabbed attention, drawing buyers as investors looked for names with clearer demand trends. (AP News)
The focus shifts now from headline revenue gains to the knottier issues: traffic and margins. Rapid new restaurant openings are pushing up costs, while customer traffic numbers can lag behind that expansion.
The setup has a flip side, too. When food costs and tariffs rise, restaurant profits can get squeezed, and if consumers pull back, pushing through price hikes gets tougher—even when the brand seems solid on paper.
Investors are eyeing whether the chain can drive more traffic as it continues to pour money into operations and accelerate new openings. Signs that the company is juicing growth with heavy discounting probably wouldn’t go down well in this tape.
Early-2026 demand is the next thing to watch, with Cava introducing new menu offerings—like the seafood bowl, on track for launch by quarter’s end. Traders are eyeing any signs of steady traffic as the impact of recent price changes becomes clearer.
