Cava, the fast-casual Mediterranean restaurant chain, reported record-breaking income for fiscal yr 2025 on Tuesday and forecast gross sales progress for fiscal yr 2026.
Shares gained roughly 10% in prolonged buying and selling Tuesday.
“Whereas there are plenty of elements round us which are creating pressures from a margin perspective, our mannequin has allowed us to be very considerate and decrease worth will increase to our visitors and to shoppers usually, which actually helps elevate our price notion,” CFO Tricia Tolivar informed CNBC.
Although the corporate stated final quarter that it noticed a pullback amongst youthful shoppers, Tolivar stated that development got here to an finish within the closing three months of its fiscal yr.
“We truly noticed firming in that class, and general [we’re] seeing enchancment in our traits throughout earnings cohorts, age cohorts, totally different components of the nation,” Tolivar stated. “And actually, we consider there’s a bit little bit of a bridge that we have been in a position to create on this Okay-shaped financial system, the place we wish to be accessible for everybody, and we’re doing our greatest to make sure that our superb culinary and unimaginable hospitality is there for all prospects throughout the nation.”
She added that a few of Cava’s greatest performing eating places are in markets the place median family incomes are decrease.
The restaurant chain reported same-store gross sales up 0.5% in its fiscal fourth quarter, in comparison with Wall Road estimates of a 1.1% decline, in response to StreetAccount. A lot of that progress was because of menu costs and product combine, and partially offset by a 1.4% decline in foot visitors, the corporate stated.
Tolivar stated Cava raised costs about 1.7% at the start of 2025 and that 2026 would see “very modest will increase.”
The corporate additionally recorded 72 web new restaurant openings in fiscal 2025 for a complete of 439 areas.
This is how Cava carried out within the interval ended Dec. 28 in contrast with what Wall Road was anticipating, primarily based on a survey of analysts by LSEG:
- Earnings per share: 4 cents vs. 3 cents anticipated
- Income: $275 million vs. $268 million anticipated
Within the fourth quarter, Cava reported web earnings of $4.9 million, or 4 cents per share, in comparison with $78.6 million, or 66 cents per share, within the fourth quarter of 2024.
Income of $275 million marked a rise of practically 21% yr over yr.
For the complete fiscal yr, the corporate reported record-breaking income surpassing $1 billion, a progress of greater than 20% in comparison with the yr prior. Similar-restaurant gross sales for the yr elevated by 4%.
“We consider our momentum displays extra than simply enlargement,” CEO Brett Schulman stated on a name with analysts. “It indicators that our price proposition is resonating with right now’s more and more discerning client, and as visitors develop into extra intentional with their spend, they’re selecting manufacturers like Cava that ship actual differentiation by means of daring flavors, wholesome meals and hospitality that creates significant human connection.”
For fiscal yr 2026, Cava stated it expects 74 to 76 web new restaurant openings, along with same-store gross sales progress of three% to five%.
Tolivar stated the corporate is anticipating sturdy outcomes from its upcoming menu additions, together with a salmon providing, which can mark Cava’s first entry into seafood.
