Cava Surpasses Billion-Dollar Revenue Milestone Amid Shifting Consumer Trends

Cava's revenue surpassed $1.1B in 2025 driven by 72 new restaurants, but Q4 comparable sales growth slowed to 0.5% as customer visits declined.

The Mediterranean restaurant chain Cava achieved a significant financial milestone in its 2025 fiscal year, breaking through the $1 billion revenue barrier for the first time. This landmark was fueled by aggressive expansion across the United States. However, a detailed look at the year-end performance reveals emerging headwinds, as consumer behavior appears to be growing more cautious.

Strategic Expansion Drives Record Results

Cava’s full-year revenue advanced by 22.5% to reach $1.169 billion. This substantial growth was primarily powered by a rapid increase in its physical footprint. The company launched 72 new locations during the period, expanding its total restaurant count to 439. This represents a nearly 20% year-over-year increase in its network size.

At locations open for more than a year, sales rose by 4.0% for the full year. This comparable-restaurant growth was supported by strategic price adjustments and a shift toward a more profitable product mix. The company's restaurant-level operating margin remained robust at 24.4%, though it experienced a slight contraction of 60 basis points compared to the prior year.

Fourth-Quarter Performance Signals a Slowdown

Despite the strong annual figures, the final quarter of the fiscal year presented a more nuanced picture. While quarterly revenue increased 21.2% to $272.8 million, the growth engine at established locations showed signs of stalling. Comparable sales growth decelerated sharply to just 0.5%.

A critical concern emerged in customer traffic. Visits to existing restaurants declined by 1.4% during the fourth quarter. This trend raises questions about the long-term sustainability of growth if new openings must continually offset weakening guest counts. To maintain positive comparable sales, Cava has relied on higher average checks and its favorable menu mix. For the quarter, the company reported a net income of $4.9 million.

Guidance for Fiscal 2026 Emphasizes Continued Growth

Management has reaffirmed its commitment to expansion for the coming year. The company's blueprint for 2026 includes opening between 74 and 76 new restaurants. Leadership is targeting a rebound in comparable sales growth, projecting an increase in the range of 3.0% to 5.0%. This forecast suggests an expected recovery from the softness observed in the previous quarter.

Financially, Cava anticipates an adjusted EBITDA between $176 million and $184 million for the new fiscal year. The strategy continues to leverage economies of scale to protect profitability in what is acknowledged as a challenging consumer environment. Achieving these goals will largely depend on the company's ability to attract customers back into its restaurants more frequently, despite signs of a more selective spending climate.