Growth, Cost Pressures

CAVA Group announced first‑quarter 2026 results that exceeded consensus, reporting revenue of $438.3 million, up 32.2 % YoY. Same‑restaurant sales grew 9.7 %, and the chain added 20 net new restaurants, bringing the total to 459 units. Adjusted EBITDA climbed 37.6 % to $61.7 million, representing 14.1 % of revenue, while net income slipped to $23.6 million due to higher equity‑based compensation and depreciation. The firm revised its full‑year 2026 guidance, raising comparable‑sales expectations to 4.5 %‑6.5 % (from 3.0 %‑5.0 %) and projecting adjusted EBITDA of $181.0‑$191.0 million. Net‑new openings are now targeted at 75‑77 locations. Restaurant‑level profit margins are forecast at 23.7 %‑24.3 %, reflecting a 32.3 % YoY increase, and average unit volume reached $3.0 million. Digital revenue now accounts for 39.9 % of the mix, up four percentage points from Q4 2025, driven by a new platform investment. Energy cost inflation of 12 % and packaging cost hikes of 8 % are expected to erode margins by 15 basis points in 2026, partially offsetting gains from higher unit volume. The company’s cash position remains strong, with $403 million in cash and investments, zero debt, and $64.1 million in cash flow from operations. Menu innovation, such as the introduction of salmon, and a focus on delivery and online ordering have bolstered the digital mix while adding cost pressures. Energy and packaging costs are projected to impact margins by 20‑40 basis points in the near term.