Shares of Cava Group surged nearly 26% on Wednesday as the Mediterranean-style restaurant chain reported robust growth and outlined ambitious expansion plans. By the end of the trading day, Cava’s stock had risen to $85.37, bringing its market capitalization to approximately $7.9 billion.
The company’s financial report for the fiscal fourth quarter, which concluded on December 28, highlighted a significant year-over-year revenue increase of 21.2%, reaching $272.8 million. This growth was fueled by the opening of 24 new locations in the fourth quarter and a cumulative total of 72 new restaurants in the entirety of fiscal 2025, raising its overall count to 439 establishments.
While same-restaurant sales—a critical metric reflecting revenue from locations operational for at least a year—saw a modest increase of 0.5%, this was accompanied by a slight decrease in guest traffic, which fell by 1.4%. Despite this, menu price increases and an appealing product mix offset the downturn in visits. CEO Brett Schulman remarked during the company’s conference call that consumers are increasingly selective in their dining choices, gravitating towards brands that emphasize unique flavors and healthy offerings while fostering a welcoming environment.
In fiscal 2025, Cava recorded an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $25.8 million, a 2.6% rise from the previous year. Nevertheless, the company’s revenue growth was partly tempered by the expenses associated with opening new stores and other investment initiatives aimed at enhancing its footprint.
Looking ahead to fiscal 2026, Cava plans to increase its restaurant count by approximately 75 new locations and is projecting an uptick of around 4% in sales from its existing establishments. This strategic growth is anticipated to elevate the chain’s adjusted EBITDA to between $176 million and $184 million, a notable rise from $152.8 million in 2025.
Schulman emphasized that the company’s strong performance and market share gains underscore the effectiveness of its value proposition, demonstrating its brand’s relevance to an increasingly discerning consumer base.
