kavaThe fast-casual Mediterranean restaurant chain on Tuesday reported record earnings for fiscal year 2025 and projected sales growth for fiscal year 2026.
Shares rose more than 20% in midday trading Wednesday.
“There are a lot of factors around us that create pressure from a margin standpoint, but our model has allowed us to be very thoughtful and minimize price increases for our guests and the general consumer. This really helps us increase our value perception,” Chief Financial Officer Tricia Tolliver told CNBC.
The company said it saw a pullback among younger consumers last quarter, but that trend ended in the final three months of the fiscal year, Tolliver said.
“In fact, we’re seeing some solidity in this category, with overall trends improving across income groups, age groups, and different regions of the country,” Tolliver said. “And in fact, we believe we’ve been able to build some bridges in this K-shaped economy. We want to be an accessible destination for everyone, and we’re doing our best to make sure we offer our great food and great hospitality to all of our customers across the country.”
She added that some of Cava’s best-performing restaurants are in markets with lower median household incomes.
The restaurant chain reported a 0.5% increase in same-store sales for its fiscal fourth quarter, according to Street accounts, compared to Wall Street’s expectations for a 1.1% decline. The company said much of that growth was driven by menu pricing and product mix, partially offset by a 1.4% decline in foot traffic.
Tribal said Kava had increased in price by about 1.7% in early 2025, but would see “very modest price increases” in 2026.
The company also recorded 72 net new restaurant openings in fiscal 2025, for a total of 439 restaurants.
Here’s how Cava performed for the period ended December 28 compared to Wall Street expectations, based on a survey of analysts by LSEG:
Earnings per share: 4 cents vs. 3 cents expected Earnings: $275 million vs. $268 million expected
Cava reported net income of $4.9 million, or 4 cents per share, in the fourth quarter. By comparison, net income for the fourth quarter of 2024 was $78.6 million, or 66 cents per share.
Revenue was $275 million, up nearly 21% year over year.
The company reported record revenue of more than $1 billion for the entire fiscal year, representing more than 20% year-over-year growth. The restaurant’s annual sales increased by 4%.
“We believe our momentum reflects more than just expansion,” CEO Brett Schulman said on a conference call with analysts. “This shows that our value proposition resonates with today’s increasingly discerning consumers. As guests become more intentional with their money, they choose brands like Cava that truly differentiate themselves through bold flavors, healthy eating, and hospitality that creates meaningful relationships.”
For fiscal 2026, Cava said it expects same-store sales to increase 3% to 5%, as well as net new restaurant openings of 74 to 76.
Tribal said the company expects good results with upcoming menu additions, including a salmon offering that marks its entry into the seafood sector.
