Key Highlights

  • Sales at CAVA reached USD 353.7 million in the fiscal third quarter ending October 4, 2026 after a 22.1% gain from USD 289.8 million, while same restaurant sales increased 3.1%.
  • Net income of USD 13.2 million, or USD 0.11 per diluted share, compared with USD 14.7 million, or USD 0.12, as Depreciation and equity-based compensation grew.
  • Restaurant-level profit Margin eased 120 basis points to 23.4%, while adjusted EBITDA, a non-GAAP measure, rose 5.7% to USD 42.3 million.
  • Full-year same restaurant sales guidance moved up to 6.0% to 7.0% from 4.5% to 6.5%, and the restaurant-level margin range narrowed to 23.7% to 24.0%.

Expansion Drives a Revenue Gain Despite Cyclospora Pressure

CAVA Group (NYSE:CAVA) announced fiscal third-quarter results on November 4, 2026. CAVA Revenue climbed 22.1% to USD 353.7 million, aided by 102 net new restaurants opened over the past year and a 3.1% rise in same restaurant sales. That comparable gain included about 3.0% from menu pricing and product mix plus slightly positive guest traffic, and it was trimmed by roughly 150 basis points because of Cyclospora and wider concerns about fresh produce. Twenty-four net new restaurants opened during the quarter, bringing the estate to 500, up 20.5% year over year. Consolidated revenue across all segments was USD 356.4 million, versus USD 292.2 million.

Why Margins and Net Income Moved Lower

Restaurant-level profit reached USD 82.7 million, up 16.2%, yet the margin slid to 23.4% as labor investment, heavier third-party delivery and higher repair costs weighed. Management notes that delivery dilutes the margin rate while adding margin dollars through higher guest prices. Net income fell to USD 13.2 million from USD 14.7 million as depreciation and amortization climbed to USD 21.3 million and equity-based compensation grew, partly offset by stronger operations. Pre-opening costs came in at USD 8.4 million against USD 4.9 million, and general and administrative expenses totaled USD 38.1 million, or 10.7% of revenue, including executive transition costs.

Outlook Changes, Cash Generation and Digital Mix

The revised outlook raises net new openings to 76 to 78 from 75 to 77 and narrows adjusted EBITDA to USD 184.0 million to USD 189.0 million from USD 181.0 million to USD 191.0 million. Pre-opening cost guidance jumped to USD 28.5 million to USD 29.5 million from USD 22.0 million to USD 22.5 million. Year-to-date Operating Cash Flow reached USD 181.6 million, and free cash flow, a non-GAAP measure, came to USD 37.1 million after Investment in new units. Digital revenue made up 38.5% of the mix. Risks listed include competition, new restaurant performance, labor and food costs, Supply chain and the pace of expansion. The Earnings Call was scheduled for November 4, 2026 to discuss the quarter and provide a Business update.

Where Things Stand

Sales guidance rose, but profit did not keep pace in the quarter. CAVA Group (NYSE:CAVA) lifted full-year same restaurant sales guidance to 6.0% to 7.0% even as quarterly net income slipped to USD 13.2 million, since new-unit costs, depreciation and delivery mix absorbed the extra revenue. Forty-week net income was USD 59.8 million against USD 58.8 million, and forty-week revenue reached USD 1,163.1 million against USD 904.7 million, so the year to date remains well ahead of 2025. Next markers are whether traffic recovers from the produce concern, how the margin holds in the 23.7% to 24.0% range and whether fourth-quarter openings meet the 76 to 78 target.