Key Highlights

  • Fiscal third quarter Revenue was USD 356.44 million against an estimate of USD 358.40 million and USD 292.24 million before.
  • Diluted EPS was USD 0.11 against an estimate of USD 0.12, with Net Income of USD 13.2 million.
  • Net new openings of 24 brought the total to 500 restaurants, and same restaurant sales increased 3.1%.
  • Full year same restaurant sales guidance was changed to 6.0% to 7.0% from 4.5% to 6.5%.

CAVA Group, Inc. (NYSE:CAVA) opened its 500th restaurant during the fiscal third quarter ended October 4, 2026, which co-founder and chief executive Brett Schulman said came ahead of schedule. The quarter included 24 net new openings, a 20.5% increase in total CAVA restaurants from a year earlier, and revenue of USD 356.44 million against an estimate of USD 358.40 million. Diluted EPS was USD 0.11 against an estimate of USD 0.12.

How the 500th Opening Fits the Quarter

Schulman said the company continued to gain Market Share and expand its footprint despite broader industry pressures. CAVA revenue, the restaurant segment figure, rose 22.1% to USD 353.7 million from USD 289.8 million. The company tied the increase mainly to 102 net new openings during or after the third quarter of fiscal 2025 and to a 3.1% increase in same restaurant sales.

Same restaurant sales rose 3.0% from menu price and product mix together with slightly positive guest traffic. The company said Cyclospora and broader concerns about fresh produce consumption reduced same restaurant sales by approximately 150 basis points. Average unit Volume was USD 3.1 million against USD 2.9 million, and digital revenue mix was 38.5%.

Results Around the Milestone

Total revenue was USD 356.44 million against USD 292.24 million, and net income was USD 13.2 million against USD 14.7 million. Management attributed the lower net income mainly to higher Depreciation and amortization, which includes Capital Investment in the guest and team member experience, and to higher equity-based compensation, partly offset by better operating performance.

CAVA restaurant-level profit was USD 82.7 million, with a Margin of 23.4%, which the company described as a decrease of 120 basis points. It cited labor investments, a higher mix of third-party delivery and spending on repairs and maintenance, partly offset by Leverage from higher same restaurant sales. Management noted that third-party delivery dilutes the margin rate but adds margin dollars because of a higher guest price.

General and administrative expenses were USD 38.1 million, or 10.7% of revenue, against USD 31.5 million, or 10.8%. Pre-opening costs were USD 8.4 million against USD 4.9 million, and adjusted EBITDA was USD 42.3 million, or 11.9% of revenue, a stated increase of 5.7% year over year.

Cash, Spending and Updated Guidance

Cash and cash equivalents were USD 297.9 million, against USD 282.9 million at the prior fiscal year end. For the forty weeks, net cash provided by Operating Activities was USD 181.6 million, purchases of property and equipment were USD 144.5 million and free Cash Flow was USD 37.1 million.

The November 4 guidance changed several full year 2026 ranges from those given on August 11. Net new openings are guided at 76 to 78 from 75 to 77, same restaurant sales at 6.0% to 7.0% from 4.5% to 6.5%, and restaurant-level profit margin at 23.7% to 24.0% from 23.7% to 24.3%. Pre-opening costs are guided at USD 28.5 million to USD 29.5 million from USD 22.0 million to USD 22.5 million, and adjusted EBITDA at USD 184.0 million to USD 189.0 million from USD 181.0 million to USD 191.0 million.

Quarter in Numbers

Revenue of USD 356.44 million sits alongside 500 restaurants, a restaurant-level profit margin of 23.4% and adjusted EBITDA of USD 42.3 million.

The company held its Earnings Call on November 4, 2026 at 5:00 p.m. Eastern time. For the rest of fiscal 2026, management named 76 to 78 net new openings, same restaurant sales of 6.0% to 7.0% and adjusted EBITDA of USD 184.0 million to USD 189.0 million as its guidance, and described continued investment in its teams and guests.