CAVA Group (CAVA) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 20% year-over-year to $289.8 million, with same restaurant sales up 1.9% and 17 net new restaurants opened, bringing the total to 415 locations, a 17.9% increase year-over-year.

• Adjusted EBITDA rose 19.6% to $40 million, and net income was $14.7 million; restaurant-level profit margin was 24.6%.

• Market share continues to expand, with strong brand relevance and guest loyalty despite macroeconomic pressures.

• Average unit volumes (AUV) reached $2.94 million, with new restaurant productivity above 100%.

• Digital revenue mix increased to 37.6% for the quarter.

Financial highlights

• Restaurant-level profit was $71.2 million (24.6% of revenue), up 15.1% from Q3 2024.

• Food, beverage, and packaging costs rose to 30.1% of revenue, mainly due to tariffs and the chicken shawarma launch.

• Labor costs increased to 25.5% of revenue, reflecting a 2% wage investment.

• General and administrative expenses (excluding stock-based comp and transition costs) improved to 9.4% of revenue.

• Year-to-date cash flow from operations was $144.5 million; free cash flow was $23.3 million.

Outlook and guidance

• 2025 guidance: 68-70 net new restaurants, same restaurant sales growth of 3%-4%, restaurant-level profit margin of 24.4%-24.8%, pre-opening costs of $18-$19 million, and adjusted EBITDA of $148-$152 million.

• Q4 guidance is cautious due to macro headwinds and tough prior-year comparisons; current trends are slightly above the midpoint of the range.

• 2026 outlook includes at least 16% unit growth and low to mid-single digit same restaurant sales growth.