CAVA Group (NYSE: CAVA) reported its first-quarter results that comfortably beat Wall Street expectations. However, shares fell 3% in pre-market trading today as investors reacted to a cautious full-year outlook.
The Mediterranean fast-casual restaurant chain posted adjusted earnings of $0.22 per share, well above the $0.02 Street estimate. Revenue jumped 29.5% year-over-year to $331.83 million, beating expectations of $280.93 million. Same-restaurant sales grew 10.8%, with traffic up 7.5% during the quarter.
CAVA Group also expanded its footprint, opening 15 net new restaurants to end the quarter with 382 locations across 26 states and Washington, D.C.
Brett Schulman, Co-Founder and CEO, expressed pride in the company surpassing $1 billion in revenue over the past twelve months. He highlighted this milestone as evidence that Mediterranean cuisine is becoming a major cultural food category and that CAVA has firmly established itself as a leader in the space.
Despite the strong quarter, CAVA Group maintained its same-restaurant sales growth projection of 6% to 8% for the full 2025 year and modestly raised its full-year net new opening target to 64–68 from a previous range of 62–66. Adjusted EBITDA guidance was also raised slightly to $152–$159 million, up from $150–$157 million.
Investors appeared underwhelmed by the outlook, viewing it as conservative relative to the robust Q1 results.
Restaurant-level profit margin was 25.1% in Q1, just below the 25.2% margin reported a year earlier, reflecting elevated food and labor costs. Digital sales accounted for 38% of total revenue, underscoring the brand’s ongoing investment in omnichannel engagement.
As of the latest update, CAVA Group (NYSE: CAVA) shares are down 3.09%, trading at $96.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
