Cava, the Mediterranean fast-casual restaurant chain, announced a record-breaking revenue for fiscal year 2025 and projected continued sales growth for fiscal year 2026. The company’s stock surged over 25% following the announcement. Chief Financial Officer Tricia Tolivar emphasized that despite various economic pressures impacting margins, Cava has managed to limit price increases, enhancing its value perception among customers.
While previous data indicated a decline in patronage from younger demographics, Tolivar noted that this trend reversed in the last quarter of the fiscal year. She highlighted that growth was observed across diverse income and age groups as the brand strives to remain accessible to all consumers. Notably, some of Cava’s strongest-performing locations are in areas with lower median household incomes.
In terms of financial performance, Cava reported a 0.5% increase in same-store sales for the fourth quarter, surpassing Wall Street estimates of a 1.1% decline. The increase was largely attributed to strategic menu pricing and product mix, although foot traffic did see a 1.4% dip. The company implemented a modest price increase of approximately 1.7% at the beginning of 2025, with minimal increases anticipated for 2026.
For the fiscal year concluded December 28, Cava’s revenue reached $275 million—a nearly 21% year-over-year increase—exceeding analyst expectations. The net income for the fourth quarter was $4.9 million, down from $78.6 million in the same period the previous year. Looking ahead, Cava plans to open 74 to 76 new locations in fiscal year 2026 and anticipates same-store sales growth of 3% to 5%.
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