CAVA Group, Inc.

What they do

CAVA operates fast-casual restaurants serving chef-curated and customizable bowls and pitas built from 38 ingredients, with a menu spanning vegan, vegetarian, gluten-free, dairy-free, paleo, keto and nut-free options. It centrally produces dips, spreads and certain dressing bases for use in its restaurants and also sells dips, spreads and prepared dressings in grocery stores. As of December 28, 2025 it operated 439 restaurants in 28 states and Washington, D.C.; as of July 12, 2026 that had grown to 476 restaurants in 29 states and Washington, D.C. It employed roughly 12,900 restaurant Team Members and 580 manufacturing and Collaboration Center employees as of December 28, 2025.

Revenue drivers

• CAVA restaurants (company-owned) — All company-owned CAVA restaurants form the CAVA segment, the company's one reportable segment; CAVA Revenue was $365.4 million in the twelve weeks ended July 12, 2026, up 31.3% year over year, driven by 94 net new openings since the prior-year quarter and 9.0% same restaurant sales.
• Same restaurant sales — Second quarter fiscal 2026 same restaurant sales rose 9.0%, split between 5.3% guest traffic and 3.7% menu price and product mix; year-to-date same restaurant sales rose 9.4%.
• Digital and delivery channels — Digital Revenue Mix was 39.0% of revenue in the twelve weeks ended July 12, 2026, up 1.7 points from 37.3%, and 39.5% year to date; a higher mix of third-party delivery was dilutive to restaurant-level margin rate in the quarter.
• CAVA Foods / CPG — CAVA Foods produces dips, spreads and certain dressing bases used in restaurants and includes the CPG business selling dips, spreads and prepared dressings in grocery stores; it is below quantitative thresholds for segment reporting and CPG operations are included in Other non-reportable segment.

Recent performance

For the fiscal second quarter ended July 12, 2026, CAVA Revenue grew 31.3% to $365.4 million from $278.2 million a year earlier, with same restaurant sales up 9.0% on 5.3% guest traffic growth and 3.7% menu price and product mix. Net income was $23.0 million versus $18.4 million, and Adjusted EBITDA rose 30.0% to $54.7 million, or 14.9% of revenue. CAVA Restaurant-Level Profit was $93.8 million, up 28.1%, while restaurant-level profit margin fell 60 basis points to 25.7% on Pomegranate Glazed Salmon input costs launched April 20, 2026, higher third-party delivery mix, and incremental wage investments. The company opened 17 net new restaurants in the quarter, ending with 476 locations, a 19.6% year-over-year increase. For fiscal 2025, revenue was $1.18 billion and net income was $63.7 million, down from $130.3 million in 2024, with diluted EPS of $0.54 versus $1.10.

Strategy

Management's stated pillars are expanding the Mediterranean concept across communities, growing footprint and multi-channel access, driving culinary innovation and communication, and developing guest relationships through digital and loyalty. The company targets more than 1,000 CAVA restaurants in the United States by 2032, citing a belief that it is in the early stages of its total restaurant potential. It is investing in streamlining and automating restaurant preparation, enhancing training and standards, and using data and technology to improve operations. Growth is funded partly from operations: year-to-date fiscal 2026 net cash provided by operating activities was $134.5 million with Free Cash Flow of $44.8 million. It also continues menu innovation such as Pomegranate Glazed Salmon, introduced April 20, 2026.

Risks

• Highly competitive industry — CAVA competes with national, regional and local restaurants, particularly fast-casual and traditional fast-food chains, as well as grocery stores, convenience stores, meal subscription services and delivery kitchens.
• Growth execution and new restaurant performance — Its future growth depends on opening new restaurants while managing growth and maintaining culture, and new restaurants may not be profitable or may take sales from existing locations.
• Food safety and supply chain — Food safety issues and food-borne illness concerns may harm the business, and failure to manage manufacturing and supply chain effectively could adversely affect results.
• Margin pressure from costs and channel mix — Restaurant-level profit margin fell 60 basis points to 25.7% in the second quarter of fiscal 2026 on input costs for the Pomegranate Glazed Salmon launch, higher third-party delivery mix, and incremental wage investments.

Outlook

Management said second quarter results, including 9.0% same restaurant sales with 5.3% guest traffic growth and 17 net new openings, reinforce the portability of the concept, with new restaurants from Mishawaka, Indiana to Downingtown, Pennsylvania outperforming expectations. The company states it has confidence in its momentum and in a long runway ahead, supported by its unit economic model. It continues to target more than 1,000 CAVA restaurants in the United States by 2032.