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WASHINGTON - Cava Group Inc. (NYSE:CAVA) reported third-quarter earnings that exceeded analyst expectations, but shares slipped 4.6% following the release as the Mediterranean fast-casual chain’s same-store sales growth decelerated significantly.
The company posted adjusted earnings of $0.12 per share, slightly above the analyst estimate of $0.11, while revenue reached $292.24 million, handily beating the consensus forecast of $252.53 million.
Total revenue grew 20.0% YoY, driven by new restaurant openings and modest same-store sales growth of 1.9%, which marked a sharp slowdown from the 18.1% growth reported in the same quarter last year.
"Q3 of 2025 delivered another quarter of market share growth, while we continued to reinforce our value proposition," said Brett Schulman, Co-Founder and CEO. "Despite lapping strong prior-year results and navigating macroeconomic headwinds, the underlying strength of our model is evident."
Cava opened 17 net new restaurants during the quarter, bringing its total to 415 locations, representing a 17.9% increase from the prior year. Restaurant-level profit margin contracted to 24.6% from 25.6% in the year-ago period, primarily due to higher third-party delivery costs, increased food costs related to tariffs and new menu items, and wage investments.
The company lowered its full-year guidance, now expecting same-restaurant sales growth of 3.0% to 4.0%, down from its previous forecast of 4.0% to 6.0%. Cava also reduced its adjusted EBITDA outlook to between $148.0 million and $152.0 million, compared to the earlier projection of $152.0 million to $159.0 million.
Digital revenue accounted for 37.6% of total sales, while the company’s average unit volume reached $2.9 million, up from $2.8 million in the prior year quarter. Cava maintained its target of 68 to 70 net new restaurant openings for the full year, highlighting continued expansion despite the challenging consumer environment.
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