Key Takeaways
- • CAVA surpassed $1 billion in annual revenue for fiscal 2025, growing 22.5% year-over-year to $1,169.3 million, marking a critical transition from newly public company to sustainable large-scale growth enterprise. Same-restaurant sales grew 4.0% for the full year despite strong prior-year comparisons and macroeconomic headwinds.
- • Opened 72 net new restaurants in fiscal 2025 with plans to open 74-76 additional locations in 2026, including expansion into Midwest markets (Cincinnati, St. Louis, Columbus, Minneapolis) while maintaining conservative 90% new restaurant productivity assumptions.
- • Q4 2025 net income declined to $4.9 million (4 cents per share) from $78.6 million (66 cents per share) in the prior year quarter, though adjusted EBITDA remained stable at $25.8 million versus $25.1 million year-over-year; restaurant-level profit margin of 21.4% in Q4.
- • Restaurant-level profit margin sustained at 24.4% for full year 2025 while maintaining disciplined pricing—taking less than half the price increases of industry peers—and implemented only a 1.4% in-restaurant menu price adjustment in January 2026 to protect everyday value positioning.
- • Digital revenue mix reached 38.9% in Q4 2025; completed rollout of TurboChef ovens across fleet and deployed new Kitchen Display System (KDS) in 370 locations to enhance operational consistency and digital order accuracy ahead of premium protein launches.
Summary
CAVA Group (NYSE: CAVA) delivered a milestone fiscal 2025 by crossing the $1 billion annual revenue threshold, signaling maturation from newly public operator to sustainable enterprise at scale. Full-year revenue grew 22.5% to $1,169.3 million compared to $954.3 million in fiscal 2024, while same-restaurant sales increased 4.0% despite challenging year-over-year comparisons and dynamic macroeconomic conditions. Co-Founder and CEO Brett Schulman attributed the momentum to the company's value proposition and brand resonance with increasingly discerning consumers seeking healthful Mediterranean cuisine and bold flavors.
Fourth quarter 2025 results showed continued expansion momentum with revenue growing 21.2% to $272.8 million against $225.1 million in the prior year period. CAVA opened 24 net new restaurants in Q4, bringing full-year unit growth to 72 net new openings. Same-restaurant sales growth decelerated to 0.5% in the quarter, reflecting comparisons against a strong prior year. Restaurant-level profit grew 15.7% year-over-year to $58.3 million with margins of 21.4%, while full-year restaurant-level profit margin held steady at 24.4%—a critical metric signaling operational discipline at scale. However, net income contracted significantly to $4.9 million from $78.6 million in Q4 2024, primarily due to the prior year period benefiting from a one-time gain. Adjusted EBITDA showed resilience at $25.8 million versus $25.1 million year-over-year.
Management maintained disciplined pricing strategy, implementing price increases at less than half the rate of industry peers to reinforce long-term guest trust and protect the everyday value positioning central to the brand's appeal. In January 2026, CAVA executed a 1.4% in-restaurant menu price adjustment excluding base bowls. Digital revenue mix strengthened to 38.9% in Q4, underpinning omnichannel penetration. Operational infrastructure improvements included completion of TurboChef oven rollout across the entire fleet and deployment of new Kitchen Display Systems in 370 locations, positioning the company for improved culinary consistency and reduced digital order errors ahead of premium protein launches, including Pomegranate-glazed Salmon.
For fiscal 2026, CAVA projects 74-76 net new restaurant openings with entry into Midwest markets including Cincinnati, St. Louis, Columbus, and Minneapolis. Management guided for same-restaurant sales growth of 3% to 5%, intentionally conservative despite current trends tracking above this range. The company anticipates a 100 basis point restaurant-level margin headwind beginning in Q2 2026 from premium protein introductions, though expects this to remain penny profit neutral. CAVA also targets a second market test for the catering channel in late 2026 with broader expansion potential beginning in 2027. Internal leadership development strengthened through the 'Flavor Your Future' initiative, which filled 60% of new Assistant General Manager roles through internal promotions, while a restructured field leadership model with zone and market leaders enhances operational accountability as footprint scales.
Fourth quarter 2025 results showed continued expansion momentum with revenue growing 21.2% to $272.8 million against $225.1 million in the prior year period. CAVA opened 24 net new restaurants in Q4, bringing full-year unit growth to 72 net new openings. Same-restaurant sales growth decelerated to 0.5% in the quarter, reflecting comparisons against a strong prior year. Restaurant-level profit grew 15.7% year-over-year to $58.3 million with margins of 21.4%, while full-year restaurant-level profit margin held steady at 24.4%—a critical metric signaling operational discipline at scale. However, net income contracted significantly to $4.9 million from $78.6 million in Q4 2024, primarily due to the prior year period benefiting from a one-time gain. Adjusted EBITDA showed resilience at $25.8 million versus $25.1 million year-over-year.
Management maintained disciplined pricing strategy, implementing price increases at less than half the rate of industry peers to reinforce long-term guest trust and protect the everyday value positioning central to the brand's appeal. In January 2026, CAVA executed a 1.4% in-restaurant menu price adjustment excluding base bowls. Digital revenue mix strengthened to 38.9% in Q4, underpinning omnichannel penetration. Operational infrastructure improvements included completion of TurboChef oven rollout across the entire fleet and deployment of new Kitchen Display Systems in 370 locations, positioning the company for improved culinary consistency and reduced digital order errors ahead of premium protein launches, including Pomegranate-glazed Salmon.
For fiscal 2026, CAVA projects 74-76 net new restaurant openings with entry into Midwest markets including Cincinnati, St. Louis, Columbus, and Minneapolis. Management guided for same-restaurant sales growth of 3% to 5%, intentionally conservative despite current trends tracking above this range. The company anticipates a 100 basis point restaurant-level margin headwind beginning in Q2 2026 from premium protein introductions, though expects this to remain penny profit neutral. CAVA also targets a second market test for the catering channel in late 2026 with broader expansion potential beginning in 2027. Internal leadership development strengthened through the 'Flavor Your Future' initiative, which filled 60% of new Assistant General Manager roles through internal promotions, while a restructured field leadership model with zone and market leaders enhances operational accountability as footprint scales.
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