Key Highlights

  • CAVA Group (NYSE:CAVA) was quoted 11.99% lower at USD 54.55 in premarket trading on November 5, 2026, after results released on November 4, 2026.
  • Third-quarter Revenue rose 22.1% to USD 356.4 million, but restaurant-level profit Margin fell 120 basis points to 23.4%.
  • Net income eased to USD 13.2 million from USD 14.7 million a year earlier, while adjusted EBITDA rose 5.7% to USD 42.3 million.
  • Full-year guidance now calls for a restaurant-level margin of 23.7% to 24.0%, down from a top end of 24.3%, and adjusted EBITDA of USD 184.0 million to USD 189.0 million.

Third-Quarter Report Lands After the Close

CAVA Group (NYSE:CAVA) published its third-quarter 2026 results in an 8-K on November 4, 2026, and the shares were quoted 11.99% lower at USD 54.55 in premarket trading on November 5, 2026, per the premarket quote. Total revenue rose 22.1% to USD 356.4 million, with USD 353.7 million coming from the CAVA restaurant business. Same restaurant sales grew about 3%, driven by menu price and product mix with slightly positive guest traffic. The company opened 24 net new restaurants in the quarter and ended it with 500 locations. Restaurant-level profit margin slipped 120 basis points to 23.4%, and Net Income fell to USD 13.2 million from USD 14.7 million in the third quarter of 2025.

Margins, Guidance and Management View

Restaurant-level profit margin measures sales less food, labor, occupancy and other restaurant operating costs, before corporate overhead, so a decline of 120 basis points suggests that costs grew faster than check size. Adjusted EBITDA still rose 5.7% to USD 42.3 million. In the updated outlook dated November 4, 2026, the company now expects a full-year restaurant-level profit margin of 23.7% to 24.0%, compared with 23.7% to 24.3% given on August 11, 2026. Pre-opening costs are now expected at USD 28.5 million to USD 29.5 million, up from USD 22.0 million to USD 22.5 million, and adjusted EBITDA at USD 184.0 million to USD 189.0 million, a narrower band than the earlier USD 181.0 million to USD 191.0 million. Co-founder and Chief Executive Officer Brett Schulman said that, despite broader industry pressures, the company continued to gain Market Share and expand its footprint.

Risks and What to Watch Next

The Balance Sheet is not the concern: the company reported USD 297.9 million of cash and cash equivalents on October 4, 2026, plus USD 130.0 million of investments. The risk lies in valuation and expectations. A premium-priced restaurant growth stock tends to be judged on traffic and margin, and a trimmed margin range alongside higher pre-opening costs raises the question of how quickly new units mature. The low end of the margin range is unchanged, so the revision is modest next to the premarket reaction. Investors will look for fourth-quarter traffic trends, Commodity and labor costs, and the pace of openings. Premarket quotes can reverse once regular trading begins and Liquidity deepens, so the quoted decline should not be read as a settled price.

Where Things Stand

CAVA Group (NYSE:CAVA) fell 11.99% premarket largely because profitability weakened while the growth story stayed intact. Revenue grew 22.1%, but restaurant-level margin dropped 120 basis points to 23.4%, net income declined, and the margin and pre-opening cost guidance moved in the wrong direction. Offsetting that, adjusted EBITDA rose 5.7%, cash is ample at USD 297.9 million, and the company continues to add restaurants. The balance of evidence points to a reset in expectations rather than a broken model, though traffic is only slightly positive. The next checkpoints are fourth-quarter results and any commentary on cost pressure and new-unit performance.