CAVA Group (CAVA) Q2 2026 earnings summary

Executive summary

• Revenue increased 31.3% year-over-year to $365.4 million, driven by 17 net new restaurant openings and 9.0% same-restaurant sales growth, with guest traffic up 5.3%.

• Net income rose 25.3% to $23.0 million, and Adjusted EBITDA grew 30.0% to $54.7 million compared to the prior year quarter.

• Restaurant-level profit margin was 25.7%, with digital revenue mix at 39.0%.

• Free cash flow year-to-date was $44.8 million, marking the 10th consecutive quarter of positive cash flow.

• Continued investment in people, operations, culinary innovation, and digital channels, including new menu launches and CPG product growth.

Financial highlights

• Restaurant-level profit reached $93.8 million, up 28.1% year-over-year.

• Food, beverage, and packaging costs rose to 30% of revenue, mainly due to new menu launches and fuel surcharges.

• Labor costs increased to 25.3% of revenue, reflecting wage investments.

• General and administrative expenses (ex-equity comp) were 9.3% of revenue, down from 9.8% last year.

• Diluted EPS was $0.19, up from $0.16 in Q2 2025.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: 75-77 net new restaurant openings, same-restaurant sales growth of 4.5%-6.5%, and restaurant-level profit margin of 23.7%-24.3%.

• Adjusted EBITDA guidance of $181-$191 million, including pre-opening costs.

• Guidance incorporates prudent assumptions for food safety concerns and macroeconomic/geopolitical uncertainty.

• Sufficient liquidity is anticipated for the next twelve months and foreseeable future.