Cava Reports Strong Sales Growth, Beats Revenue Estimates

Mediterranean restaurant chain Cava reported better-than-expected sales for its latest quarter. The company said its same-store sales grew 10.8% in the three months ending April 20, beating Wall Street’s estimate of 10.3%.

Total revenue rose to $332 million, higher than the expected $327 million. Net income increased to $25.71 million, or 22 cents per share, up from $13.99 million and 12 cents per share a year ago. A tax benefit from stock-based compensation helped boost profits.

Customer Spending and Traffic Up

CFO Tricia Tolivar said more customers visited Cava and spent more, especially on premium items like pita chips and juices. She also noted that people are shifting away from fast food and casual dining and choosing Cava more often.

Company Maintains Sales Outlook

Despite strong results, Cava kept its full-year sales forecast unchanged, expecting 6% to 8% growth in same-store sales. However, it raised its forecast for adjusted annual earnings to $152 million to $159 million and plans to open up to 68 new locations, slightly more than previously planned.

Restaurant Industry Faces Pressure

While Cava saw growth, other food chains struggled. Chipotle reported fewer customer visits, and Sweetgreen saw its first sales decline since going public. McDonald’s also said low- and middle-income customers are spending less, with U.S. sales down 3.6%.

Stock Drops Despite Good Results

Even with strong performance, Cava’s stock fell 5% in after-hours trading. The stock has dropped 11% this year, as investors remain cautious about the company’s conservative outlook and concerns over the impact of new U.S. tariffs.

Cava’s total revenue for the past 12 months has now crossed $1 billion, marking a major milestone for the fast-growing restaurant brand.