CAVA Q3 2026 earnings: net income falls to $13.2M
CAVA raised its fiscal 2026 Same Restaurant Sales outlook to 6.0% to 7.0%, with other full-year operating ranges also revised.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
CAVA Group, Inc. reported fiscal third-quarter 2026 results for the quarter ended October 4, 2026, including CAVA Revenue of $353.7 million, up 22.1% year over year, and Same Restaurant Sales growth of 3.1%. It opened 24 net new restaurants, bringing the quarter-end total to 500. Consolidated revenue was $356.436 million. Net income was $13.198 million versus $14.747 million a year earlier; Adjusted EBITDA, a non-GAAP measure, rose 5.7% to $42.326 million.
CAVA Restaurant-Level Profit was $82.726 million, up 16.2%, while its margin declined 120 basis points to 23.4%. CAVA attributed the margin decline to labor investments, a higher mix of third-party delivery, and investments in repairs and maintenance. Year to date, net cash provided by operating activities was $181.594 million and Free Cash Flow was $37.084 million.
For fiscal 2026, the revised outlook calls for 76 to 78 net new openings, Same Restaurant Sales of 6.0% to 7.0%, CAVA Restaurant-Level Profit Margin of 23.7% to 24.0%, pre-opening costs of $28.5 million to $29.5 million, and Adjusted EBITDA of $184.0 million to $189.0 million.
3 points · 1 major0 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 Same Restaurant Sales outlook rose to 6.0% to 7.0%.
- Moderate pointCAVA Revenue increased 22.1% to $353.7 million year over year.
- Moderate pointAdjusted EBITDA rose 5.7% to $42.326 million year over year.
Negative
- Moderate pointNet income declined to $13.198 million from $14.747 million year over year.
- Minor pointRestaurant-level profit margin fell 120 basis points to 23.4% year over year.
Filing Explained
CAVA revised its fiscal 2026 outlook: expected openings rose to 76–78 from 75–77 and same-restaurant sales to
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
CAVA Revenue: $353.7 million
Net income: $13.198 million
Adjusted EBITDA: $42.326 million
+5 more
8 metrics
CAVA Revenue
$353.7 million
Fiscal third quarter 2026; up 22.1% year over year
Net income
$13.198 million
Fiscal third quarter 2026; compared with $14.747 million in the prior-year quarter
Adjusted EBITDA
$42.326 million
Fiscal third quarter 2026; up 5.7% year over year
Net New CAVA Restaurant Openings
24
Fiscal third quarter 2026
Same Restaurant Sales
3.1%
Fiscal third quarter 2026
CAVA Restaurant-Level Profit Margin
23.4%
Fiscal third quarter 2026; down 120 basis points year over year
Same Restaurant Sales outlook
6.0% to 7.0%
Updated fiscal full-year 2026 guidance
Free Cash Flow
$37.084 million
Forty weeks ended October 4, 2026
Key Terms
Adjusted EBITDA, Same Restaurant Sales, CAVA Restaurant-Level Profit Margin, Average Unit Volume, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $42.3 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Same Restaurant Sales financial
"Same Restaurant Sales increased 3.1%"
Same-restaurant sales measure how revenue at a company’s existing dining locations changed over a given period, excluding any new openings or permanently closed outlets. Investors use it to see whether underlying customer demand and day-to-day operations are improving or worsening — like checking whether the same group of stores is selling more or less this year, so you’re comparing apples to apples rather than counting growth from new locations.
CAVA Restaurant-Level Profit Margin financial
"CAVA Restaurant-Level Profit Margin was 23.4%"
Average Unit Volume financial
"“Average Unit Volume” or “AUV” represents total revenue"
Average unit volume (AUV) is the typical amount of sales generated by a single location or franchise over a set period, usually a year, averaged across all stores or outlets. Investors use it like a per-shop revenue thermometer—higher AUVs mean each location is selling more, which helps assess a business’s core strength, compare productivity between chains, and predict how adding or closing locations will affect overall revenue and profitability.
Free Cash Flow financial
"“Free Cash Flow” means net cash provided by operating activities"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Digital Revenue Mix financial
"“Digital Revenue Mix” represents the portion of CAVA Revenue"
The share of a company's total sales that comes from digital sources such as websites, apps, online subscriptions, digital advertising, or cloud services. Investors watch this because a higher digital revenue mix often means faster growth, lower costs and easier scaling, similar to a bakery getting more orders from an online delivery app than from walk-in customers—it can signal improved margins, customer reach and future resilience.
Earnings Snapshot
CAVA Revenue: $353.7 million · Guidance included
Fiscal third quarter 2026 ended October 4, 2026
CAVA Revenue
$353.7 million
Up 22.1% year over year
Net income
$13.198 million
Compared with $14.747 million in the prior-year quarter
Adjusted EBITDA
$42.326 million
Up 5.7% year over year
CAVA Restaurant-Level Profit Margin
23.4%
Down 120 basis points year over year
Guidance
Fiscal 2026: 76 to 78 Net New CAVA Restaurant Openings; Same Restaurant Sales 6.0% to 7.0%; CAVA Restaurant-Level Profit Margin 23.7% to 24.0%; pre-opening costs $28.5 million to $29.5 million; Adjusted EBITDA $184.0 million to $189.0 million.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did CAVA report in Q3 2026?
CAVA Revenue was $353.7 million, up 22.1% year over year. Consolidated revenue was $356.436 million for the twelve weeks ended October 4, 2026, compared with $292.238 million for the twelve weeks ended October 5, 2025.
What was CAVA's net income in Q3 2026?
Net income was $13.198 million, compared with $14.747 million in the prior-year quarter. CAVA attributed the decrease primarily to higher depreciation and amortization and higher equity-based compensation, partially offset by improved operating performance.
What is CAVA's updated fiscal 2026 guidance?
CAVA's updated outlook is 76 to 78 net new restaurant openings; Same Restaurant Sales of 6.0% to 7.0%; CAVA Restaurant-Level Profit Margin of 23.7% to 24.0%; pre-opening costs of $28.5 million to $29.5 million; and Adjusted EBITDA of $184.0 million to $189.0 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 4, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (202 ) 400-2920
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02Results of Operations and Financial Condition
On November 4, 2026 , CAVA Group, Inc. (the "Company") issued a press release announcing earnings and other financial results for the fiscal quarter ended October 4, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information in this Item 2.02, including the corresponding Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits.
The following exhibit is being furnished as part of this report:
| Exhibit No. | Description | |||||||
| 99.1 | CAVA Group, Inc. Press Release, dated November 4, 2026 | |||||||
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL | |||||||
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: | CAVA Group, Inc. | ||||||||||
| By: | /s/ Tricia Tolivar | ||||||||||
| Name: | Tricia Tolivar | ||||||||||
| Title: | Title: Chief Financial Officer (duly authorized officer and principal financial officer) | ||||||||||
Exhibit 99.1
CAVA GROUP REPORTS THIRD QUARTER 2026 RESULTS
___________________________________________
YEAR OVER YEAR CAVA REVENUE GROWTH OF 22.1% INCLUDING SAME RESTAURANT SALES OF 3.1%
___________________________________________
24 NET NEW CAVA RESTAURANT OPENINGS DURING QUARTER
___________________________________________
THIRD QUARTER 2026 CAVA RESTAURANT-LEVEL PROFIT MARGIN OF 23.4%
___________________________________________
WASHINGTON, D.C. (November 4, 2026) - CAVA Group, Inc. (NYSE: CAVA) (“CAVA Group” or the “Company”), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced financial results for its fiscal third quarter ended October 4, 2026.
“In the third quarter, despite broader industry pressures, we continued to gain market share, expand our footprint, and see strong performance from our new restaurants,” said Brett Schulman, Co-Founder and CEO. “Same Restaurant Sales grew 3.1%, CAVA Revenue increased 22.1%, and we opened our 500th restaurant ahead of schedule. As we look ahead, we will continue investing in our teams and our guests, strengthening the lasting relationships that support durable growth.”
Fiscal Third Quarter 2026 Highlights:
•CAVA Revenue grew 22.1% to $353.7 million as compared to $289.8 million in the prior year quarter and 46.5% as compared to the third quarter of fiscal 2024.
•Net New CAVA Restaurant Openings of 24, bringing total CAVA Restaurants to 500, a 20.5% increase in total CAVA Restaurants year over year.
•Same Restaurant Sales increased 3.1%.
•AUV of $3.1 million as compared to $2.9 million in the prior year quarter.
•CAVA Restaurant-Level Profit of $82.7 million or growth of 16.2% over the prior year quarter, with CAVA Restaurant-Level Profit Margin of 23.4%.
•Digital Revenue Mix was 38.5%.
•Net Income of $13.2 million.
•Adjusted EBITDA1 grew 5.7% to $42.3 million.
•Year to date net cash provided by operating activities of $181.6 million with Free Cash Flow1 of $37.1 million.
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Fiscal Third Quarter 2026 Review:
CAVA Revenue was $353.7 million, an increase of 22.1% compared with the third quarter of fiscal 2025. The increase was primarily driven by 102 Net New CAVA Restaurant Openings during or subsequent to the third quarter of fiscal 2025, which are exceeding our performance expectations, and an increase in Same Restaurant Sales of 3.1%. Same Restaurant Sales increased 3.0% from menu price and product mix and slightly positive Guest Traffic. Same Restaurant Sales decreased by approximately 150 basis points due to the impact of Cyclospora and broader concerns around fresh produce consumption.
CAVA Restaurant-Level Profit Margin was 23.4%, a decrease of 120 basis points compared to the third quarter of fiscal 2025. The decrease was driven by incremental labor investments, a higher mix of third-party delivery, and investments in repairs and maintenance, partially offset by leverage associated with an increase in Same Restaurant Sales. As previously disclosed, third-party delivery is dilutive to margin rate, but has a positive impact on margin dollars due to a higher guest price.
General and administrative expenses were $38.1 million, or 10.7% of revenue, as compared to $31.5 million, or 10.8% of revenue, in the third quarter of fiscal 2025. General and administrative expenses, excluding equity-based compensation and executive transition costs1, were $33.6 million as compared to $27.4 million in the third quarter of fiscal 2025. As a percentage of revenue, general and administrative expenses, excluding equity-based compensation and executive transition costs, remained flat at 9.4% of revenue primarily due to leverage from higher sales, offset by investments to support future growth.
Net income was $13.2 million compared to $14.7 million in the third quarter of fiscal 2025. The decrease in net income was primarily due to higher depreciation and amortization, which includes the impact of capital investments made to enhance the guest and team member experience, and higher equity-based compensation, partially offset by improved operating performance.
Adjusted EBITDA1 was $42.3 million, or 11.9% of revenue, an increase of $2.3 million, or 5.7%, compared to the third quarter of fiscal 2025. The increase was primarily driven by the increase in Same Restaurant Sales and the number of and continued strength in the performance of Net New CAVA Restaurant Openings during or subsequent to the third quarter of fiscal 2025, partially offset by investments to support future growth, including pre-opening costs.
__________________
1 Adjusted EBITDA, Free Cash Flow, and General and administrative expenses, excluding equity-based compensation and executive transition costs, are non-GAAP financial measures. Reconciliations to the most directly comparable financial measures presented in accordance with GAAP are set forth in the tables at the end of this press release.
Fiscal Full-Year 2026 Outlook:
CAVA Group announced today that it updated fiscal full-year 2026 guidance, as follows:
| August 11, 2026 | November 4, 2026 | |||||||||||||
| Net New CAVA Restaurant Openings | 75 to 77 | 76 to 78 | ||||||||||||
| Same Restaurant Sales | 4.5% to 6.5% | 6.0% to 7.0% | ||||||||||||
| CAVA Restaurant-Level Profit Margin | 23.7% to 24.3% | 23.7% to 24.0% | ||||||||||||
| Pre-opening costs | $22.0 to $22.5 million | $28.5 to $29.5 million | ||||||||||||
| Adjusted EBITDA | $181.0 to $191.0 million | $184.0 to $189.0 million | ||||||||||||
Actual results may differ materially from CAVA Group’s fiscal full-year 2026 guidance as a result of, among other things, the factors described under “Cautionary Statement Regarding Forward-Looking Statements” below.
A reconciliation of the forward-looking fiscal 2026 Adjusted EBITDA to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our
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control, or cannot be reasonably predicted. For these reasons, we are unable to assess the potential significance of the unavailable information.
About CAVA Group:
CAVA is the category-defining Mediterranean fast-casual restaurant brand bringing together bold, healthful flavors and ingredients at scale. A founder-led company, CAVA is guided by the belief that food should taste as good as it makes you feel, and that great meals and warm Mediterranean hospitality go hand in hand. Across more than 500 restaurants in 31 states and Washington, D.C., guests can choose from an abundant selection of chef-curated or build your own bowls and pitas to meet their dietary and taste preferences. There are more than 17 billion possible ingredient combinations, featuring a variety of proteins, vegetables, signature dips such as Crazy Feta®, house-made beverages, and more. Guided by its mission to bring heart, health, and humanity to food, CAVA provides meaningful career opportunities for more than 15,000 team members and continues to invest in its people and communities. Learn more at cava.com.
Earnings Conference Call:
The Company will host a conference call on November 4, 2026, at 5:00 PM Eastern Time to discuss third quarter 2026 financial results as well as provide a business update. Investors will have the opportunity to listen to the conference call live through the webcast from the Company’s website on the investor relations page at investor.cava.com. A recorded webcast will be available on CAVA’s investor relations website shortly after the call and available for up to one year.
Cautionary Statement Regarding Forward-Looking Statements:
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-looking statements relate to matters such as our fiscal full-year 2026 outlook, including Net New CAVA Restaurant Openings, Same Restaurant Sales, CAVA Restaurant-Level Profit Margin, Pre-opening costs, and Adjusted EBITDA, industry, business strategy, goals, growth opportunities and expectations, expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. These statements may include words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” “outlook,” the negative version of these words or similar terms and phrases.
The forward-looking statements contained in this press release are based on management’s current expectations and are not guarantees of future performance. The forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, and projections will result or be achieved. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following: we operate in a highly competitive industry; our future growth depends on our ability to open new restaurants while managing our growth effectively and maintaining our culture, and our historical growth may not be indicative of our future growth; we may not be able to successfully identify appropriate locations and develop and expand our operations in existing and new markets; new restaurants may not be profitable and may negatively impact sales at our existing locations; negative changes in guest perception of our brand could negatively impact our business; our efforts to market our restaurants and brand may not be successful; food safety issues and food-borne illness concerns may harm our business; if we are unable to maintain or increase prices, our margins may decrease; the growth of our business depends on our ability to accurately predict guest trends and demand and successfully introduce new menu offerings and improve our existing menu offerings; economic factors and guest behavior trends, which are uncertain and largely beyond our control, may adversely affect guests’ behavior and our ability to maintain or increase sales at our restaurants; we are subject to risks associated with leasing property; we may not be able to successfully expand our digital and
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delivery business, which is subject to risks outside of our control; our inability or failure to utilize, recognize, respond to, and effectively manage the immediacy of social media could have a material adverse effect on our business; we may not realize the anticipated benefits from past and potential future acquisitions, investments, or other strategic initiatives; we may not be able to manage our manufacturing and supply chain effectively, which may adversely affect our results of operations; our reliance on third parties could have an adverse effect on our business, financial condition, and results of operations; we may experience shortages, delays, or interruptions in the delivery of food items and other products; we may not successfully optimize, operate, and manage our production facilities; we may face increases in food, commodity, energy, and other costs; we may face increases in labor costs, labor shortages, and difficulties in our ability to identify, hire, train, motivate, and retain the right team members; our success depends on our ability to attract, develop, and retain our management team and key team members; security breaches of our information systems or data including in relation to the electronic processing of credit and debit card transactions, the CAVA app, or confidential guest or team member information (including personal information) may adversely affect our business; our business is subject to complex and evolving laws and regulations regarding privacy, data protection, and cybersecurity; we rely heavily on information technology systems and failures of, or interruptions in, or not effectively scaling and adapting our information technology systems could harm our business; we are subject to extensive laws and regulatory requirements, and failure to comply with, or changes in, these laws or regulations could have an adverse impact on our business; we are subject to evolving rules and regulations with respect to sustainability matters; climate change and volatile adverse weather conditions could adversely affect our restaurant sales or results of operations; and each of the other factors set forth in “Part I—Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025, and in other reports filed with the United States Securities and Exchange Commission, all of which are available on the investor relations page of our website at investor.cava.com.
You should not put undue reliance on any forward-looking statement. Any forward-looking statements made by us in this press release speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in this press release. We do not undertake any obligation to revise or update any forward-looking statements, except as required by law. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.
Investor Relations: | Media Relations: | |||||||
Katie Semple, Investor Relations | media@cava.com | |||||||
investor.relations@cava.com | ||||||||
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| CAVA GROUP, INC. | |||||||||||||||||||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| Twelve Weeks Ended | Forty Weeks Ended | ||||||||||||||||||||||
| (in thousands, except per share amounts) | October 4, 2026 | October 5, 2025 | October 4, 2026 | October 5, 2025 | |||||||||||||||||||
| Revenue | $ | 356,436 | $ | 292,238 | $ | 1,163,142 | $ | 904,679 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Restaurant operating expenses (excluding depreciation and amortization) | |||||||||||||||||||||||
| Food, beverage, and packaging | 107,055 | 88,289 | 345,235 | 268,798 | |||||||||||||||||||
| Labor | 92,129 | 73,849 | 296,081 | 227,907 | |||||||||||||||||||
| Occupancy | 23,822 | 19,523 | 76,744 | 62,722 | |||||||||||||||||||
| Other operating expenses | 49,107 | 38,211 | 153,985 | 114,142 | |||||||||||||||||||
| Total restaurant operating expenses | 272,113 | 219,872 | 872,045 | 673,569 | |||||||||||||||||||
| General and administrative expenses | 38,072 | 31,499 | 129,462 | 104,944 | |||||||||||||||||||
| Depreciation and amortization | 21,271 | 17,628 | 67,703 | 55,254 | |||||||||||||||||||
| Pre-opening costs | 8,425 | 4,942 | 21,327 | 14,519 | |||||||||||||||||||
| Impairment and asset disposal costs | 1,554 | 1,176 | 5,501 | 3,917 | |||||||||||||||||||
| Total operating expenses | 341,435 | 275,117 | 1,096,038 | 852,203 | |||||||||||||||||||
| Income from operations | 15,001 | 17,121 | 67,104 | 52,476 | |||||||||||||||||||
| Interest income, net | (3,544) | (3,575) | (10,919) | (11,773) | |||||||||||||||||||
| Other (income) expense, net | (135) | 30 | (1,274) | (471) | |||||||||||||||||||
| Income before taxes | 18,680 | 20,666 | 79,297 | 64,720 | |||||||||||||||||||
| Provision for income taxes | 5,482 | 5,919 | 19,516 | 5,898 | |||||||||||||||||||
| Net income | $ | 13,198 | $ | 14,747 | $ | 59,781 | $ | 58,822 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 0.11 | $ | 0.13 | $ | 0.51 | $ | 0.51 | |||||||||||||||
| Diluted | $ | 0.11 | $ | 0.12 | $ | 0.51 | $ | 0.50 | |||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||||||
| Basic | 116,822 | 115,960 | 116,564 | 115,733 | |||||||||||||||||||
| Diluted | 118,286 | 118,271 | 118,326 | 118,356 | |||||||||||||||||||
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The following tables summarize the results of the CAVA segment:
| Twelve Weeks Ended | |||||||||||||||||||||||||||||||||||
| October 4, 2026 | October 5, 2025 | Change | |||||||||||||||||||||||||||||||||
(in thousands) | $ | % of Revenue | $ | % of Revenue | $ | % | |||||||||||||||||||||||||||||
Revenue | $ | 353,719 | 100.0 | % | $ | 289,787 | 100.0 | % | $ | 63,932 | 22.1 | % | |||||||||||||||||||||||
| Restaurant operating expenses (excluding depreciation and amortization) | |||||||||||||||||||||||||||||||||||
| Food, beverage, and packaging | 106,146 | 30.0 | 87,245 | 30.1 | 18,901 | 21.7 | |||||||||||||||||||||||||||||
Labor | 92,129 | 26.0 | 73,849 | 25.5 | 18,280 | 24.8 | |||||||||||||||||||||||||||||
Occupancy | 23,822 | 6.7 | 19,523 | 6.7 | 4,299 | 22.0 | |||||||||||||||||||||||||||||
Other operating expenses | 48,896 | 13.8 | 38,005 | 13.1 | 10,891 | 28.7 | |||||||||||||||||||||||||||||
Total restaurant operating expenses | 270,993 | 76.6 | 218,622 | 75.4 | 52,371 | 24.0 | |||||||||||||||||||||||||||||
Restaurant-level profit | $ | 82,726 | 23.4 | % | $ | 71,165 | 24.6 | % | $ | 11,561 | 16.2 | % | |||||||||||||||||||||||
| Forty Weeks Ended | |||||||||||||||||||||||||||||||||||
| October 4, 2026 | October 5, 2025 | Change | |||||||||||||||||||||||||||||||||
(in thousands) | $ | % of Revenue | $ | % of Revenue | $ | % | |||||||||||||||||||||||||||||
Revenue | $ | 1,153,544 | 100.0 | % | $ | 896,518 | 100.0 | % | $ | 257,026 | 28.7 | % | |||||||||||||||||||||||
Restaurant operating expenses (excluding depreciation and amortization) | |||||||||||||||||||||||||||||||||||
| Food, beverage, and packaging | 342,060 | 29.7 | 265,679 | 29.6 | 76,381 | 28.7 | |||||||||||||||||||||||||||||
Labor | 296,081 | 25.7 | 227,907 | 25.4 | 68,174 | 29.9 | |||||||||||||||||||||||||||||
Occupancy | 76,744 | 6.7 | 62,722 | 7.0 | 14,022 | 22.4 | |||||||||||||||||||||||||||||
Other operating expenses | 153,269 | 13.3 | 113,478 | 12.7 | 39,791 | 35.1 | |||||||||||||||||||||||||||||
Total restaurant operating expenses | 868,154 | 75.3 | 669,786 | 74.7 | 198,368 | 29.6 | |||||||||||||||||||||||||||||
Restaurant-level profit | $ | 285,390 | 24.7 | % | $ | 226,732 | 25.3 | % | $ | 58,658 | 25.9 | % | |||||||||||||||||||||||
The following table presents selected quarterly financial and other data:
($ in thousands) | Q3 2026 | Q2 2026 | Q1 20261 | Q4 2025 | Q3 2025 | ||||||||||||||||||||||||
Net New CAVA Restaurant Openings | 24 | 17 | 20 | 24 | 17 | ||||||||||||||||||||||||
CAVA Restaurants, end of period | 500 | 476 | 459 | 439 | 415 | ||||||||||||||||||||||||
Same Restaurant Sales | 3.1 | % | 9.0 | % | 9.7 | % | 0.5 | % | 1.9 | % | |||||||||||||||||||
AUV | $ | 3,111 | $ | 3,088 | $ | 3,027 | $ | 2,934 | $ | 2,935 | |||||||||||||||||||
CAVA Restaurant-Level Profit | $ | 82,726 | $ | 93,812 | $ | 108,852 | $ | 58,312 | $ | 71,165 | |||||||||||||||||||
CAVA Restaurant-Level Profit Margin | 23.4 | % | 25.7 | % | 25.1 | % | 21.4 | % | 24.6 | % | |||||||||||||||||||
Restaurant Operating Weeks | 5,798 | 5,606 | 7,150 | 5,140 | 4,881 | ||||||||||||||||||||||||
__________________
1 In a 52-week fiscal year, the first fiscal quarter contains sixteen weeks and the second, third, and fourth fiscal quarters each contain twelve weeks.
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The following table presents the Company’s selected balance sheet data:
| (in thousands) | October 4, 2026 | December 28, 2025 | |||||||||
| Cash and cash equivalents | $ | 297,896 | $ | 282,917 | |||||||
| Investments at fair value | 129,977 | 110,112 | |||||||||
| Total assets | 1,532,863 | 1,360,027 | |||||||||
| Total liabilities | 673,977 | 580,371 | |||||||||
| Total stockholders’ equity | 858,886 | 779,656 | |||||||||
| Total liabilities and stockholders’ equity | 1,532,863 | 1,360,027 | |||||||||
The following table shows the growth in our company-owned CAVA Restaurant base:
| Twelve Weeks Ended | Forty Weeks Ended | ||||||||||||||||||||||
| October 4, 2026 | October 5, 2025 | October 4, 2026 | October 5, 2025 | ||||||||||||||||||||
| Beginning of period | 476 | 398 | 439 | 367 | |||||||||||||||||||
| New CAVA Restaurant openings | 24 | 17 | 62 | 48 | |||||||||||||||||||
| Permanent closure | — | — | (1) | — | |||||||||||||||||||
| End of period | 500 | 415 | 500 | 415 | |||||||||||||||||||
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Non-GAAP Financial Measures
In addition to our consolidated financial statements, which are prepared in accordance with GAAP, we present Adjusted EBITDA, Adjusted EBITDA Margin, general and administrative expenses, excluding equity-based compensation and executive transition costs, and Free Cash Flow in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. We believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our operating performance. Management believes Adjusted EBITDA, Adjusted EBITDA Margin, general and administrative expenses, excluding equity-based compensation and executive transition costs, and Free Cash Flow are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses Adjusted EBITDA, Adjusted EBITDA Margin, general and administrative expenses, excluding equity-based compensation and executive transition costs, and Free Cash Flow to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide.
Adjusted EBITDA, Adjusted EBITDA Margin, general and administrative expenses, excluding equity-based compensation and executive transition costs, and Free Cash Flow are not recognized terms under GAAP and should not be considered as alternatives to net income, net income margin, or general and administrative expenses, as applicable, as measures of financial performance or cash provided by operating activities as measures of liquidity, or any other performance measure derived in accordance with GAAP. Additionally, Adjusted EBITDA and Free Cash Flow are not intended to be measures of cash flow available for management’s discretionary use, as Adjusted EBITDA does not consider certain cash requirements such as tax payments and financing cash flows, and Free Cash Flow does not consider certain cash requirements such as financing cash flows. Our non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under GAAP. Some of these limitations are:
•Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
•Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
•Adjusted EBITDA and Free Cash Flow do not reflect cash flows from financing activities of our business;
•Adjusted EBITDA does not reflect period to period changes in taxes, income tax expense, or the cash necessary to pay income taxes;
•Adjusted EBITDA does not reflect the impact of earnings or cash charges resulting from matters we consider not to be indicative of our ongoing operations;
•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
•other companies in our industry may calculate Adjusted EBITDA, Adjusted EBITDA Margin, general and administrative expenses, excluding equity-based compensation and executive transition costs, and Free Cash Flow differently than we do, limiting their usefulness as comparative measures.
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The following table reconciles net income to Adjusted EBITDA and net income margin to Adjusted EBITDA margin:
| Twelve Weeks Ended | Forty Weeks Ended | ||||||||||||||||||||||
| (in thousands) | October 4, 2026 | October 5, 2025 | October 4, 2026 | October 5, 2025 | |||||||||||||||||||
| Net income | $ | 13,198 | $ | 14,747 | $ | 59,781 | $ | 58,822 | |||||||||||||||
| Non-GAAP Adjustments | |||||||||||||||||||||||
| Interest income, net | (3,544) | (3,575) | (10,919) | (11,773) | |||||||||||||||||||
| Provision for income taxes | 5,482 | 5,919 | 19,516 | 5,898 | |||||||||||||||||||
| Depreciation and amortization | 21,271 | 17,628 | 67,703 | 55,254 | |||||||||||||||||||
| Equity-based compensation | 4,500 | 3,285 | 17,923 | 14,517 | |||||||||||||||||||
| Other (income) expense, net | (135) | 30 | (1,274) | (471) | |||||||||||||||||||
| Impairment and asset disposal costs | 1,554 | 1,176 | 5,501 | 3,917 | |||||||||||||||||||
| Executive transition costs | — | 832 | 545 | 832 | |||||||||||||||||||
| Adjusted EBITDA | $ | 42,326 | $ | 40,042 | $ | 158,776 | $ | 126,996 | |||||||||||||||
| Revenue | $ | 356,436 | $ | 292,238 | $ | 1,163,142 | $ | 904,679 | |||||||||||||||
| Net income margin | 3.7 | % | 5.0 | % | 5.1 | % | 6.5 | % | |||||||||||||||
| Adjusted EBITDA margin | 11.9 | % | 13.7 | % | 13.7 | % | 14.0 | % | |||||||||||||||
The following table reconciles general and administrative expenses to general and administrative expenses, excluding equity-based compensation and executive transition costs:
| Twelve Weeks Ended | Forty Weeks Ended | ||||||||||||||||||||||
| (in thousands) | October 4, 2026 | October 5, 2025 | October 4, 2026 | October 5, 2025 | |||||||||||||||||||
| General and administrative expenses | $ | 38,072 | $ | 31,499 | $ | 129,462 | $ | 104,944 | |||||||||||||||
| Equity-based compensation | 4,500 | 3,285 | 17,923 | 14,517 | |||||||||||||||||||
| Executive transition costs | — | 832 | 545 | 832 | |||||||||||||||||||
| General and administrative expenses, excluding equity-based compensation and executive transition costs | $ | 33,572 | $ | 27,382 | $ | 110,994 | $ | 89,595 | |||||||||||||||
| Revenue | $ | 356,436 | $ | 292,238 | $ | 1,163,142 | $ | 904,679 | |||||||||||||||
| General and administrative expenses, as a percentage of revenue | 10.7 | % | 10.8 | % | 11.1 | % | 11.6 | % | |||||||||||||||
| General and administrative expenses, excluding equity-based compensation and executive transition costs, as a percentage of revenue | 9.4 | % | 9.4 | % | 9.5 | % | 9.9 | % | |||||||||||||||
The following table reconciles net cash provided by operating activities to Free Cash Flow:
| Forty Weeks Ended | |||||||||||
| (in thousands) | October 4, 2026 | October 5, 2025 | |||||||||
| Net cash provided by operating activities | $ | 181,594 | $ | 144,537 | |||||||
| Purchases of property and equipment | (144,510) | (121,264) | |||||||||
| Free Cash Flow | $ | 37,084 | $ | 23,273 | |||||||
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Glossary:
The following definitions apply to these terms as used in this press release:
“Adjusted EBITDA” is defined as net income adjusted to exclude interest (income) expense, net, provision for (benefit from) income taxes, and depreciation and amortization, further adjusted to exclude equity-based compensation, other (income) expense, net, impairment and asset disposal costs, and executive transition costs, in each case, to the extent applicable in a given fiscal period. See “Non-GAAP Financial Measures” for a reconciliation of net income to Adjusted EBITDA for the periods presented;
“Adjusted EBITDA Margin” is defined as Adjusted EBITDA as a percentage of revenue;
“Average Unit Volume” or “AUV” represents total revenue of operating CAVA Restaurants that were open for the entire trailing thirteen periods, and Digital Kitchens sales for such period, divided by the number of operating CAVA Restaurants that were open for the entire trailing thirteen periods;
“CAVA Restaurant-Level Profit” a segment measure of profit and loss, represents CAVA Revenue less food, beverage, and packaging, labor, occupancy, and other operating expenses, excluding depreciation and amortization. CAVA Restaurant-Level Profit excludes pre-opening costs;
“CAVA Restaurant-Level Profit Margin” represents CAVA Restaurant-Level Profit as a percentage of CAVA Revenue;
“CAVA Restaurants” is defined to include all CAVA restaurants and Hybrid Kitchens that are open or temporarily closed as of the end of the specific period. CAVA Restaurants exclude restaurants operating under license agreements and Digital Kitchens;
“CAVA Revenue” is defined to include all revenue attributable to CAVA restaurants in the specified period, excluding restaurants operating under license agreements;
“Digital Kitchen” is defined to include kitchens used for third-party marketplace and native delivery, Digital Order pick-up and/or centralized catering production, and that has neither in-restaurant dining nor customer-facing make lines;
“Digital Orders” means orders made through catering, digital channels, such as the CAVA app and the CAVA website. Digital Orders include orders fulfilled through third-party marketplace and native delivery and digital order pick-up;
“Digital Revenue Mix” represents the portion of CAVA Revenue related to Digital Orders as a percentage of total CAVA Revenue;
“Free Cash Flow” means net cash provided by operating activities less purchases of property and equipment;
“Guest Traffic” means the number of entrees ordered in-restaurant and through Digital Orders;
“Hybrid Kitchen” is defined to include kitchens that have enhanced kitchen capabilities to support centralized catering production and that also have in-restaurant dining and customer-facing make lines;
“Net New CAVA Restaurant Openings” is defined as new CAVA restaurant openings during a specified reporting period, net of any permanent CAVA restaurant closures during the same period;
“Restaurant Operating Weeks” represents the aggregate number of weeks each of our CAVA Restaurants has been open in a given period; and
“Same Restaurant Sales” is defined as the period-over-period sales comparison for CAVA restaurants that have been open for 365 days or longer.
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We operate on a 52-week or 53-week fiscal year that ends on the last Sunday of the calendar year. In a 52-week fiscal year, the first fiscal quarter contains sixteen weeks and the second, third, and fourth fiscal quarters each contain twelve weeks. In a 53-week fiscal year, the first fiscal quarter contains sixteen weeks, the second and third fiscal quarters each contain twelve weeks, and the fourth fiscal quarter contains thirteen weeks. References to “thirteen periods” are to the 13 accounting periods we have in each fiscal year, with each accounting period being four weeks, except in a 53-week fiscal year which will contain one accounting period of five weeks.
Certain numerical figures have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them.
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