CAVA Group (CAVA) Q4 2025 earnings summary

Executive summary

• Achieved record-setting year with revenue up 22.5% to $1.2 billion, surpassing $1 billion for the first time, and opened 72 net new restaurants, ending with 439 locations, a 19.6% increase year-over-year.

• Transitioned to a large-scale, sustainable growth enterprise, with strong new restaurant performance and meaningful market share gains.

• Introduced menu innovations, including pomegranate-glazed salmon and a new Mediterranean menu, and expanded loyalty program with tiered status levels.

• Completed rollout of kitchen display systems and TurboChef ovens in most locations, enhancing operational efficiency and consistency.

• Strengthened leadership pipeline with new COO and development programs, filling 60% of AGM roles, mostly through internal promotions.

Financial highlights

• Q4 revenue grew 21.2% year-over-year to $272.8 million; full-year revenue up 22.5% to $1.2 billion.

• Q4 same-restaurant sales increased 0.5%; full-year same-restaurant sales up 4.0%.

• Q4 adjusted EBITDA was $25.8 million (+2.6% YoY); full-year adjusted EBITDA $152.8 million (+21% YoY).

• Q4 net income was $4.9 million; full-year net income $63.7 million (+26.9% YoY).

• Restaurant-level profit margin for Q4 was 21.4%; full-year margin was 24.4%; free cash flow was $26.1 million.

• Ended year with $393 million in cash/investments and zero debt; cash and cash equivalents at year-end were $282.9 million.

Outlook and guidance

• 2026 guidance: 74–76 net new restaurant openings, same-restaurant sales growth of 3–5%, restaurant-level profit margin between 23.7% and 24.2%, and adjusted EBITDA of $176–184 million.

• Pre-opening costs projected at $19.5–20.0 million.

• No additional menu price increases planned for 2026 beyond a 1.4% adjustment in January.

• Effective tax rate expected to rise to 25–30% in 2026.

• Salmon launch expected to be a 100 basis point margin headwind, but penny profit neutral.