Fiscal Second Quarter 2026
Filed Aug 11, 2026CAVA GROUP REPORTS SECOND QUARTER 2026 RESULTS
CAVA delivered 31.3% revenue growth, 9.0% same restaurant sales growth led by 5.3% guest traffic growth, 17 net new restaurant openings, 25.3% net income growth, and 30.0% Adjusted EBITDA growth while reaffirming fiscal full-year 2026 guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| CAVA RevenueGAAP | $365.4 million | – | 31.3% |
| CAVA Revenue growth compared to the second quarter of fiscal 2024GAAP | 57.9% | – | – |
| Same Restaurant Salesother | 9.0% | – | – |
| Guest Traffic growthother | 5.3% | – | – |
| Menu price and product mix contribution to Same Restaurant Salesother | 3.7% | – | – |
| Net New CAVA Restaurant Openingsother | 17 | – | – |
| Total CAVA Restaurantsother | 476 | – | 19.6% |
| AUVother | $3.1 million | – | – |
| CAVA Restaurant-Level Profitother | $93.8 million | – | 28.1% |
| CAVA Restaurant-Level Profit Marginother | 25.7% | – | a decrease of 60 basis points |
| Digital Revenue Mixother | 39.0% | – | – |
| General and administrative expensesGAAP | $39.8 million | – | – |
| General and administrative expenses as a percentage of revenueGAAP | 10.8% of revenue | – | – |
| General and administrative expenses, excluding equity-based compensation and executive transition costsnon-GAAP | $34.1 million | – | – |
| General and administrative expenses, excluding equity-based compensation and executive transition costs, as a percentage of revenuenon-GAAP | 9.3% of revenue | – | – |
| Net incomeGAAP | $23.0 million | – | 25.3% |
| Net income as a percentage of revenueGAAP | 6.2% of revenue | – | – |
| Adjusted EBITDAnon-GAAP | $54.7 million | – | 30.0% |
| Adjusted EBITDA increasenon-GAAP | $12.6 million | – | 30.0% |
| Adjusted EBITDA as a percentage of revenuenon-GAAP | 14.9% of revenue | – | – |
| Net cash provided by operating activitiesGAAP | $134.5 million | – | – |
| Free Cash Flownon-GAAP | $44.8 million | – | – |
Fiscal Full-Year 2026 outlook
- NoteNet New CAVA Restaurant Openings 75 to 77
- NoteSame Restaurant Sales 4.5% to 6.5%
- NoteCAVA Restaurant-Level Profit Margin 23.7% to 24.3%
- NotePre-opening costs $22.0 to $22.5 million
- NoteAdjusted EBITDA $181.0 to $191.0 million
What drove it
- CAVA Revenue growth was primarily driven by 94 Net New CAVA Restaurant Openings during or subsequent to the second quarter of fiscal 2025 and an increase in Same Restaurant Sales of 9.0%.
- Same Restaurant Sales increased 5.3% from Guest Traffic and 3.7% from menu price and product mix.
- The increase in Adjusted EBITDA was primarily driven by the increase in Same Restaurant Sales and the number of and continued strength in the performance of Net New CAVA Restaurant Openings during or subsequent to the second quarter of fiscal 2025.
- General and administrative expenses as a percentage of revenue declined primarily due to leverage from higher sales, the timing of the CAVA Connect conference in the prior year quarter, and the timing of performance-based incentive compensation.
Concerns
- CAVA Restaurant-Level Profit Margin decreased 60 basis points compared to the second quarter of fiscal 2025.
- Margin rate was diluted by input costs associated with the launch of Pomegranate Glazed Salmon on April 20, 2026, a higher mix of third-party delivery, and incremental wage investments.
- Net income was partially offset by a higher effective tax rate driven by a lower tax benefit associated with equity-based compensation, as well as higher depreciation and amortization.
- Adjusted EBITDA growth was partially offset by investments to support future growth.
What to watch
- Execution toward fiscal full-year 2026 Net New CAVA Restaurant Openings guidance of 75 to 77.
- Same Restaurant Sales performance relative to fiscal full-year 2026 guidance of 4.5% to 6.5%.
- CAVA Restaurant-Level Profit Margin relative to fiscal full-year 2026 guidance of 23.7% to 24.3%, particularly the effects of Pomegranate Glazed Salmon, third-party delivery mix, and wage investments.
- Adjusted EBITDA relative to fiscal full-year 2026 guidance of $181.0 to $191.0 million.
Balance sheet and cash flow
- Year to date net cash provided by operating activities of $134.5 million
- Free Cash Flow of $44.8 million
Analysis
CAVA reported a strong fiscal second quarter, with CAVA Revenue of $365.4 million, up 31.3% from $278.2 million in the prior year quarter. Growth combined 94 Net New CAVA Restaurant Openings during or subsequent to the second quarter of fiscal 2025 with 9.0% Same Restaurant Sales growth. The comparable-sales result was traffic-led, with Guest Traffic contributing 5.3% and menu price and product mix contributing 3.7%. AUV increased to $3.1 million from $2.9 million, while Digital Revenue Mix was 39.0%.
Unit expansion remained material to the quarter. CAVA opened 17 net new restaurants and ended the period with 476 CAVA Restaurants, a 19.6% increase in total CAVA Restaurants year over year. Management stated that restaurants opened during or subsequent to the second quarter of fiscal 2025 are exceeding performance expectations. This combination of new-unit contribution and positive traffic growth drove revenue growth faster than the reported growth in Restaurant-Level Profit and Adjusted EBITDA.
Profitability expanded in dollars but restaurant-level margin rate declined. CAVA Restaurant-Level Profit grew 28.1% to $93.8 million, while CAVA Restaurant-Level Profit Margin was 25.7%, down 60 basis points from the second quarter of fiscal 2025. The company attributed the rate decline to Pomegranate Glazed Salmon input costs, a higher mix of third-party delivery, and incremental wage investments, partially offset by leverage from higher sales. General and administrative expenses improved as a share of revenue to 10.8% from 11.4%, and the non-GAAP measure excluding equity-based compensation and executive transition costs improved to 9.3% from 9.8%.
Net income rose 25.3% to $23.0 million and represented 6.2% of revenue. The company cited improved operating performance, partly offset by a higher effective tax rate and higher depreciation and amortization. Adjusted EBITDA increased 30.0% to $54.7 million, or 14.9% of revenue. Cash generation was reported on a year-to-date basis, with net cash provided by operating activities of $134.5 million and Free Cash Flow of $44.8 million.
CAVA reaffirmed fiscal full-year 2026 guidance rather than raising it. Guidance calls for 75 to 77 Net New CAVA Restaurant Openings, Same Restaurant Sales of 4.5% to 6.5%, CAVA Restaurant-Level Profit Margin of 23.7% to 24.3%, pre-opening costs of $22.0 to $22.5 million, and Adjusted EBITDA of $181.0 to $191.0 million. The principal items to monitor are traffic durability, new-unit execution, and whether delivery mix, food input costs, and wage investments remain a constraint on restaurant-level margin rate.
Management, verbatim
Same restaurant sales increased 9.0%, including guest traffic growth of 5.3%, and we opened 17 net new restaurants during the quarter.
Brett Schulman, Co-Founder and CEO
Our newest restaurants continue to outperform our expectations, reinforcing the proven portability of our concept and the growing demand for our differentiated Mediterranean cuisine and welcoming hospitality.
Brett Schulman, Co-Founder and CEO
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- GAAP operating income or loss and operating margin
- GAAP diluted earnings per share
- Non-GAAP earnings per share
- Quarterly net cash provided by operating activities
- Cash and cash equivalents
- Debt or borrowings
- Share repurchases
- Dividends
- Revenue guidance
- Guidance for gross margin, operating expenses, and tax rate
- Prior-quarter comparisons for reported financial and operating metrics
- Reportable segment revenue disclosures
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.