Mediterranean fast-casual chain CAVA Group (CAVA) served up a tasty earnings beat on Tuesday, and investors are digging in. Shares climbed more than 6% in after-hours trading after the company reported first-quarter results that topped expectations and raised its full-year outlook.
Here's the main course: Cava posted Q1 revenue of $438.27 million, easily clearing the consensus estimate of $411.25 million. Adjusted earnings came in at $0.20 per share, beating the $0.17 analysts were looking for. That's a 32.2% revenue jump from a year ago, fueled by same-restaurant sales growth of 9.7% — and that growth came from more people walking through the doors, with guest traffic up 6.8%.
Cava also kept expanding its footprint, opening 20 new restaurants in the quarter to bring the total to 459 locations, up 20.2% year-over-year. The company ended the period with $295.77 million in cash.
“These results, which include the lap of strong prior year comparisons, speak to the structural strength of our business, the resonance of our compelling value proposition, and our position as the dominant leader in Mediterranean – all of which fuel our confidence to sustain this momentum going forward,” said Brett Schulman, co-founder and CEO of Cava Group.
Looking ahead, Cava raised its fiscal 2026 same-restaurant sales growth guidance to a range of 4.5% to 6.5%, up from its prior forecast of 3% to 5%. The company also bumped its adjusted EBITDA guidance from $176-$184 million to $181-$191 million. And it expects to open between 75 and 77 new restaurants this year.
Cava's management will discuss the quarter in more detail on an earnings call scheduled for 5 p.m. ET.
As of Tuesday's after-hours trading, Cava shares were up 6.18% at $82.95.
