New York, Feb 25, 2026, 05:50 (EST) — Premarket
- CAVA shares climbed in premarket trading, following the company’s release of its quarterly results and new guidance for fiscal 2026.
- Unit growth ambitions are being measured up against another stretch of margin pressure for restaurants, with investors sorting out the tradeoff.
- Attention turns to traffic: will it hold steady while the chain opens new locations and adjusts prices?
Cava Group jumped roughly 10% before the open on Wednesday, with investors reacting to the Mediterranean fast-casual chain’s 2026 projections. Shares were recently quoted near $74.59, compared with Tuesday’s $67.80 close. (StockAnalysis)
Why does it matter? Restaurant stocks these days are moving mostly on just a few key signals: traffic, pricing power, and those relentless food and labor costs. Cava’s growth has been rapid, so if costs start to get ahead of sales, the stock usually reacts almost immediately.
For fast-casual chains, same-restaurant sales—tracking performance at spots open a year or more—tends to move the needle. Price hikes can juice the numbers, but investors are quick to scrutinize whether actual traffic is up, as price-driven growth can fizzle once customers start to balk.
Cava laid out its fiscal 2026 targets, pointing to 74 to 76 net new restaurants and same-store sales growth somewhere between 3% and 5%. The company is aiming for a restaurant-level profit margin of 23.7% to 24.2%. Pre-opening costs are expected to hit $19.5 million to $20.0 million, while adjusted EBITDA is pegged at $176 million to $184 million. Adjusted EBITDA strips out interest, taxes, depreciation, amortization and certain other items. (SEC)
Revenue climbed 21.2% to $272.8 million in the fourth quarter, with net income coming in at $4.9 million, according to the company. Same-restaurant sales edged up 0.5%. Menu pricing and product mix contributed 1.9 percentage points, but guest traffic slipped 1.4%. Digital sales made up 38.9% of the total. Schulman described 2025 as a “milestone year.” “For the first time in our history, revenue surpassed $1 billion,” he said. (Cava)
Cava released the numbers in a Form 8-K dated Feb. 24. Chief Financial Officer Tricia Tolivar signed off on the filing. (SEC)
Still, the stock faces a core issue: management’s forecast suggests margins aren’t getting back to last year’s level, despite ongoing store openings. Should traffic remain sluggish — or if costs for food, labor, or packaging outpace expectations — it could raise doubts among investors about how much of the growth story is driven by volume, rather than just higher prices.
Cava shares climbed roughly 8% in late Tuesday trading after the company projected same-store sales that should surpass Wall Street’s estimates. Schulman highlighted consistent demand for bowls, pitas, and salads, each running between $11 and $16. Speaking with Reuters, he noted customers are showing “heightened sensitivity” about their spending. The chain is rolling out a 1.4% price increase on select premium and side dishes, but staple bowl prices will stay put. There’s also a plan to introduce a seafood protein bowl before the current quarter wraps up. (Reuters)
