Cava Group Delivers Strong Q1 Performance Amid Mixed Market Reactions

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Key Highlights

• Cava Group exceeded profit and sales forecasts for the first quarter but offered a conservative outlook that tempered investor optimism.
• The Mediterranean fast-casual brand maintained its guidance for same-store sales growth and restaurant-level profit margins while anticipating higher operating costs.
• CEO and co-founder Brett Schulman attributed the quarter’s results to ongoing economic uncertainty and challenging weather conditions.

Cava Group (NASDAQ: CAVA) shares declined following the release of its first-quarter earnings, despite the company beating expectations on key financial metrics.

The company held steady on its full-year projections, expecting same-store sales growth between 6% and 8% and restaurant-level profit margins ranging from 24.8% to 25.2%. However, it revised upward its pre-opening cost estimates to $14.5 million–$15.5 million from the previous $14 million–$15 million.

Positive adjustments included increasing anticipated net new restaurant openings to between 64 and 68 locations, up from 62 to 66, and raising adjusted EBITDA guidance to a range of $152 million to $159 million, up from $150 million to $157 million.

Robust Q1 Results Showcase Brand Strength

During Q1, Cava posted earnings per share of $0.22 on revenues soaring 28% year-over-year to $331.8 million, outperforming Visible Alpha estimates. Same-store sales climbed 10.8%, while customer traffic increased by 7.5%—both surpassing market expectations.

CEO Brett Schulman emphasized that these results highlight the resilience and appeal of Cava’s category-leading brand, even amid economic headwinds and adverse weather.

JPMorgan analysts echoed confidence in Cava’s prospects, maintaining a "buy now and hold for the long term" stance, noting the company’s strong comparable sales growth despite a challenging environment.

Despite these positives, Cava’s shares dropped 3% on the day of the earnings report and have declined nearly 15% year-to-date in 2025.

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