Cava, the fast-casual Mediterranean restaurant chain, reported record-breaking income for fiscal 12 months 2025 on Tuesday and forecast sales development for fiscal 12 months 2026.
Shares gained roughly 10% in prolonged buying and selling Tuesday.
“Whereas there are numerous elements round us which are creating pressures from a margin perspective, our mannequin has allowed us to be very considerate and decrease value will increase to our company and to shoppers normally, which actually helps elevate our worth notion,” CFO Tricia Tolivar advised CNBC.
Although the corporate stated final quarter that it noticed a pullback amongst youthful shoppers, Tolivar stated that pattern got here to an finish within the closing three months of its fiscal 12 months.
“We truly noticed firming in that class, and general [we’re] seeing enchancment in our tendencies throughout earnings cohorts, age cohorts, totally different elements of the nation,” Tolivar stated. “And in reality, we imagine there’s just a little little bit of a bridge that we have been capable of create on this Ok-shaped economic system, the place we wish to be accessible for everybody, and we’re doing our greatest to make sure that our superb culinary and unbelievable hospitality is there for all prospects throughout the nation.”
She added that a few of Cava’s finest performing eating places are in markets the place median family incomes are decrease.
The restaurant chain reported same-store sales up 0.5% in its fiscal fourth quarter, in comparison with Wall Avenue estimates of a 1.1% decline, based on StreetAccount. A lot of that development was because of menu prices and product combine, and partially offset by a 1.4% decline in foot site visitors, the corporate stated.
Tolivar stated Cava raised prices about 1.7% firstly of 2025 and that 2026 would see “very modest will increase.”
The corporate additionally recorded 72 web new restaurant openings in fiscal 2025 for a complete of 439 places.
This is how Cava carried out within the interval ended Dec. 28 in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by LSEG:
- Earnings per share: 4 cents vs. 3 cents anticipated
- Income: $275 million vs. $268 million anticipated
Within the fourth quarter, Cava reported web earnings of $4.9 million, or 4 cents per share, in comparison with $78.6 million, or 66 cents per share, within the fourth quarter of 2024.
Income of $275 million marked a rise of almost 21% 12 months over 12 months.
For the total fiscal 12 months, the corporate reported record-breaking income surpassing $1 billion, a development of greater than 20% in comparison with the 12 months prior. Identical-restaurant sales for the 12 months elevated by 4%.
“We imagine our momentum displays extra than simply enlargement,” CEO Brett Schulman stated on a name with analysts. “It indicators that our worth proposition is resonating with at present’s more and more discerning client, and as company grow to be extra intentional with their spend, they’re selecting manufacturers like Cava that ship actual differentiation by way of daring flavors, wholesome meals and hospitality that creates significant human connection.”
For fiscal 12 months 2026, Cava stated it expects 74 to 76 web new restaurant openings, along with same-store sales development of three% to five%.
Tolivar stated the corporate is anticipating robust outcomes from its upcoming menu additions, together with a salmon providing, which is able to mark Cava’s first entry into seafood.
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