CAFA fourth quarter 2025 earnings

rewardThe Mediterranean fast-food chain reported record revenue for fiscal year 2025 on Tuesday and forecast sales growth for fiscal year 2026.

Shares rose nearly 10% in extended trading Tuesday.

“While there are a lot of factors around us that are creating pressures from a margin perspective, our model has allowed us to be very thoughtful and minimize price increases for our guests and consumers overall, which really helps raise our perception of value,” CFO Tricia Tolivar told CNBC.

Although the company said last quarter it saw a decline among younger consumers, Tolivar said that trend came to an end in the final three months of its fiscal year.

“We’ve actually seen a leveling off in this category and overall [we’re] “We see improvement in our trends across income groups, age groups and different parts of the country,” Tolivar said. “In fact, we believe there is a little bit of a bridge that we have been able to create in this K-shaped economy, where we want to be accessible to everyone, and we are doing everything we can to ensure that our amazing cuisine and amazing hospitality are available to all customers across the country.”

She added that some of Cava’s best-performing restaurants are in markets where the median household income is lower.

The restaurant chain reported same-store sales rose 0.5% in its fiscal fourth quarter, compared to Wall Street estimates of a 1.1% decline, according to StreetAccount. Most of that growth was driven by menu prices and product mix, the company said, and was partially offset by a 1.4% decline in foot traffic.

Tolivar said that Cava raised prices by about 1.7% at the beginning of 2025, and that 2026 would see “very modest increases.”

The company also recorded 72 net new restaurant openings in fiscal 2025 for a total of 439 locations.

Here’s how Cava performed in the period ending December 28 compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: 4 cents versus 3 cents expected
• profit: $275 million versus an expected $268 million

In the fourth quarter, Cava reported net income of $4.9 million, or 4 cents per share, compared to $78.6 million, or 66 cents per share, in the fourth quarter of 2024.

Revenues of $275 million represent an increase of approximately 21% year over year.

For the full fiscal year, the company reported record revenues exceeding $1 billion, a growth of more than 20% compared to the previous year. Same restaurant sales for the year were up 4%.

“We believe our momentum reflects more than just expansion,” CEO Brett Schulman said on a call with analysts. “It signals that our value proposition is resonating with today’s increasingly discerning consumers, and as guests become more intentional with their spending, they are choosing brands like Cava that offer real differentiation through bold flavours, healthy food and hospitality that creates a meaningful human connection.”

For fiscal year 2026, Cava said it expects 74 to 76 new restaurants to open, as well as same-store sales growth of 3% to 5%.

Tolivar said the company expects strong results from upcoming menu additions, including a salmon offering, which will mark Cava’s first foray into seafood.