Key Stats for CAVA GroupStock
- Today’s Price change for CAVA Group stock: 24%
- $CAVA Share Price as of Feb. 25: $86
- 52-Week High: $101
- $CAVA Stock Price Target: $73
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What Happened?
Cava Group (CAVA) stock soared more than 20% Wednesday (Feb. 25) after the Mediterranean fast-casual chain delivered better-than-expected fourth-quarter results and issued optimistic guidance for fiscal 2026.
- The company reported earnings of $0.04 per share on revenue of $275 million, beating analyst estimates of $0.03 per share on $268 million in revenue.
- More importantly, same-store sales rose 0.5% in Q4, defying Wall Street’s expectations for a 1.1% decline.
- The strong performance marked a significant milestone for Cava, which surpassed $1 billion in annual revenue for the first time in fiscal 2025.
- The company opened 72 net new restaurants during the year, ending with 439 locations across 28 states.
- For fiscal 2026, management guided for 74 to 76 new restaurant openings and same-store sales growth of 3% to 5%, signaling continued momentum despite broader industry headwinds.
Cava stock got an additional boost from management’s comments about improving consumer trends.
CFO Tricia Tolivar told analysts that the company saw firming demand from younger consumers in Q4 after experiencing weakness earlier in the year.
She noted that Cava is successfully bridging the gap in a “K-shaped economy” by keeping prices accessible while maintaining quality and hospitality.
The company also announced plans to launch salmon later in Q1 2026, marking its first seafood offering and a natural expansion of its Mediterranean menu.
Management expects the premium protein to have a 100 basis point impact on restaurant-level margins but will maintain penny profit neutrality through pricing.
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What the Market Is Telling Us About CAVA Group Stock
The explosive rally in Cava Group’s stock reflects investor enthusiasm for the company’s ability to grow amid challenging conditions in the restaurant industry.
While many competitors have resorted to heavy discounting and promotions, Cava has taken a more disciplined pricing approach, raising menu prices just 1.4% at the beginning of 2026 and skipping increases on its base bowl to protect everyday value for customers.
This strategy appears to be working. Cava’s new restaurant class in 2025 achieved over 100% productivity, with average unit volumes trending above $3 million.
The company also reported sequential improvement in two-year same-store sales throughout 2025, demonstrating strengthening underlying business trends even as the broader industry faced headwinds.
Cava Group stock benefits from several structural advantages.
- The company operates with strong unit economics, delivering restaurant-level profit margins of 21.4% in Q4 despite investments in labor and new initiatives like the Assistant General Manager program.
- Management also emphasized that its best-performing locations include restaurants in lower-income markets, suggesting the brand’s value proposition has broad appeal across different consumer segments.
- Looking ahead, investors should watch whether Cava can maintain its momentum as it scales. The company expects restaurant-level margins between 23.7% and 24.2% in fiscal 2026, reflecting investments in field leadership and the margin impact from salmon.
- However, with adjusted EBITDA guidance of $176 million to $184 million and strong new unit economics, Cava Group stock appears positioned for continued growth as it works toward its long-term target of at least 1,000 restaurants by 2032.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
