So, you know that feeling when you order a bowl and they pile on the toppings just right? That's basically what Cava Group Inc. (CAVA) did for investors Tuesday evening. The Mediterranean fast-casual restaurant chain served up its fourth-quarter financial results, and Wall Street liked what it saw on the plate.
The numbers were solid. Cava reported revenue of $274.99 million, which was more than the $267.92 million analysts were expecting. On the bottom line, the company reported adjusted earnings of four cents per share, also beating the estimate of three cents per share.
Here's the breakdown of the recipe for that growth. Total revenue jumped 21.2% compared to the same quarter last year. That increase came from a 0.5% rise in same-restaurant sales, which the company says was "primarily driven by menu price and product mix." In simpler terms, they charged a bit more and sold more of the profitable items. The trade-off? Guest traffic was down 1.4% during the quarter.
The company is also in a serious expansion phase. It opened 24 new restaurants in the last three months of the year, bringing its total location count to 439. That's a 19.6% increase from a year ago. Looking ahead, Cava expects to open between 74 and 76 new restaurants this year. It ended the quarter with a healthy $282.92 million in cash and cash equivalents, which should help fund that growth.
"Our momentum and market share gains underscore the strength of our value proposition and reflect how deeply our brand is resonating with today's increasingly discerning consumer," said Brett Schulman, co-founder and CEO of Cava Group.
The company also gave a peek at its expectations for the longer term, forecasting same-restaurant sales growth between 3% and 5% for its fiscal 2026.
Investors clearly approved of the spread. After the market closed, Cava shares were up 7.53%, trading at $73. Company executives were discussing the results on an earnings call that began at 5 p.m. ET.
