WASHINGTON, May 19, 2026, 16:56 EDT
- Cava raised its 2026 outlook after first-quarter numbers topped the broader market. Traffic, sales and restaurant profit were all ahead, bucking weakness elsewhere.
- The stock jumped roughly 6% in after-hours trading, offsetting a drop earlier in the day.
- The main point: most of the growth was due to more customers instead of price hikes.
Cava Group lifted its full-year sales and profit forecast Tuesday after posting stronger first-quarter results, helped by increased restaurant traffic. The company’s update offered investors a clearer view on growth as most of the U.S. restaurant sector continues to struggle with wavering consumer demand.
CAVA said same-restaurant sales were up 9.7% for the quarter ended April 19, with guest traffic climbing 6.8%. Menu price and mix added 2.9%. The company uses same-restaurant sales to track performance at established stores.
Cava came into the report facing doubts about its growth pace. The chain’s quarterly numbers put same-restaurant sales at 0.5% for the fourth quarter of 2025, up from 1.9% in the third quarter and 2.1% in the second quarter, ahead of the first-quarter rebound.
Cava posted consolidated revenue of $438.3 million, beating analyst estimates for $418.5 million, according to MarketBeat. Earnings came in at 20 cents a share, topping the 17-cent forecast. The company said Cava restaurant revenue jumped 32.2% to $434.4 million from last year.
CAVA Group bumped up its 2026 same-restaurant sales growth target to a range of 4.5% to 6.5%, up from the previous 3% to 5%. The company now sees net new restaurants coming in at 75 to 77, compared to an earlier goal of 74 to 76. It also lifted its adjusted EBITDA forecast to $181 million to $191 million.
Cava added 20 net new restaurants last quarter, taking its count to 459, up 20.2% from last year. CEO and co-founder Brett Schulman called out expansion into Cincinnati, St. Louis and Columbus. He said the quarter proved a “compelling value proposition.” Business Wire
CAVA’s profit dipped. The company posted net income of $23.6 million, down from $25.7 million a year ago. The fall came as a smaller tax benefit from equity comp, along with higher D&A, outweighed better restaurant operations. Restaurant-level profit margin stayed flat at 25.1%.
Shares gained 6.1% to $82.80 in after-hours trade at 4:51 p.m. Eastern, according to MarketBeat, after ending down 2.3% at $78.05. The move showed investors were watching traffic and guidance over the weaker net profit.
Cava’s numbers jumped out compared to rivals. The Wall Street Journal said restaurants have been focusing more on value with consumers still squeezed. McDonald’s is offering value meals, while Shake Shack is seeing higher costs from efforts to increase traffic. Chipotle and other fast-casual names have also been pressed about appeal to younger and lower-income customers.
Schulman is trying to hold the line without a big push on price. The Journal said Cava is holding prices on items like the $11.67 grilled chicken bowl. The goal is to protect value and bring back lower-income and younger guests.
Cava’s higher outlook means there’s more pressure on results. The company now expects pre-opening costs between $22 million and $22.5 million, up from its earlier range of $19.5 million to $20 million. Cava said a bigger share of sales from third-party delivery and higher wage spending offset some of the quarter’s sales leverage. The company said results could still be affected by competition, store execution, food and labor costs, and consumer trends.
Cava gave the market what it wanted for now: more customers coming in. With discounting getting more attention across restaurants, this is what Cava had to show.
