Cava Revenue Climbs 22% as Cyclospora Fears Slow Same-Store Sales
Cava said Q3 CAVA revenue rose 22.1% to $353.7 million; same-restaurant sales grew 3.1%, cut about 150 bps by cyclospora produce concerns.
Cava Group reported third-quarter CAVA revenue of $353.7 million, up 22.1% from $289.8 million a year earlier, as the Mediterranean fast-casual chain opened its 500th restaurant and raised full-year same-restaurant sales guidance, the Washington-based company said Wednesday.
Same-restaurant sales rose 3.1% in the quarter ended Oct. 4. The company said about 150 basis points of that measure reflected weaker demand tied to cyclospora and broader concern about fresh produce. Menu price and product mix lifted same-restaurant sales about 3.0%, with guest traffic slightly positive, according to the release. Nation’s Restaurant News reported that Cava was not implicated in the outbreak, which was linked to iceberg lettuce.
Restaurant openings and unit economics
Cava opened 24 net new restaurants in the quarter, bringing the total to 500, a 20.5% increase year over year. Average unit volume was $3.1 million, compared with $2.9 million in the year-earlier quarter. Digital revenue mix was 38.5%.
CAVA restaurant-level profit was $82.7 million, up 16.2% from a year earlier, while restaurant-level profit margin fell to 23.4% from 24.6%. The company cited higher labor costs, a larger share of third-party delivery and more spending on repairs and maintenance.
Profit, cash and outlook
Net income was $13.2 million, or $0.11 a share, down from $14.7 million a year earlier. Adjusted EBITDA rose 5.7% to $42.3 million. Year-to-date operating cash flow was $181.6 million, with free cash flow of $37.1 million, the company said.
Cava raised fiscal 2026 same-restaurant sales guidance to 6.0% to 7.0%, from 4.5% to 6.5%, and lifted planned net new openings to 76 to 78 from 75 to 77. Adjusted EBITDA guidance was narrowed to $184.0 million to $189.0 million. Co-founder and CEO Brett Schulman said in the release that new restaurants are exceeding performance expectations and that the company remains focused on investing in teams and guests.
Sources: CAVA Group, Nation’s Restaurant News
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