Description

CAVA Group’s $1 Billion Revenue Milestone Masks Slowing Same Restaurant Sales Momentum

CAVA Group, Inc. reported its fourth quarter and full year 2025 financials, marking a pivotal year where the company surpassed $1 billion in revenue for the first time. The performance was driven by strong new restaurant openings and a commitment to strategic expansion within the Mediterranean restaurant category. For the full year, CAVA’s revenue increased by 22.5%, with same-restaurant sales up by 4%. The company opened 72 net new restaurants, closing the year with 439 locations. Adjusted EBITDA rose by 21% to $152.8 million, signaling solid operational performance despite economic fluctuations. The quarterly financials indicated a revenue growth of 21.2% compared to the previous year, reaching $272.8 million, with adjusted EBITDA at $25.8 million. However, same-restaurant sales grew modestly by 0.5%, reflecting a challenging environment. CAVA’s restaurant-level profit margin stood at 21.4%, a slight increase from previous years, suggesting efficient cost management amidst rising tariffs and increased labor costs.