Cava (NYSE:CAVA) saw its shares rise sharply after reporting fiscal fourth quarter results that exceeded Wall Street expectations and issuing a positive growth forecast for 2026.
For the quarter ended December 28, the fast-casual Mediterranean chain posted earnings per share of $0.04, above analysts’ estimates of $0.03.
Revenue came in at $275 million, also exceeding the expected $268 million.
Same-store sales (SSS) grew 0.5% in the period, reversing expectations of a 1.1% decline, driven primarily by menu pricing and product mix, although foot traffic fell 1.4%.
Cava opened 24 new restaurants during the quarter, contributing to a 21.2% year-over-year increase in revenue to $272.8 million.
Restaurant-level profit rose 15.7% to $58.3 million, with a margin of 21.4%, while digital sales accounted for 38.9% of total revenue.
Net income was $4.9 million, and adjusted EBITDA reached $25.8 million, slightly above the prior-year quarter.
Looking ahead, Cava anticipates opening 74 to 76 new restaurants in fiscal 2026, with same-store sales expected to rise 3% to 5% and restaurant-level profit margins between 23.7% and 24.2%.
Pre-opening costs are projected at $19.5 million to $20 million, and adjusted EBITDA is expected in the range of $176 million to $184 million.
Analysts at Jefferies highlighted the quarter’s upside, noting that “Q4 SSS & EBITDA beat with underlying demand showing through meaningfully,” and that the improvement in one-year trends could ease investor concerns amid slower peer performance.
They wrote that upcoming initiatives, including the launch of a Salmon menu item, operational investments, and enhancements to guest experience and store operations, “should render the 3% to 5% same-store sales guide increasingly conservative through 2026.”
The analysts also noted that while the company’s EBITDA guidance was slightly below consensus at the midpoint, it reflects both expected commodity and wage inflation, as well as investments in store operations.
They concluded that Cava “remains one of the handful of investable growth concepts within restaurants where there is a good degree of visibility into the long-term growth algorithm” and reiterated a ‘Buy’ rating with an $85 price target.
Cava shares traded up almost 21% at about $82 on Wednesday morning.