CAVA Group Shares Jump After Beating Q2 Revenue Estimates

CAVA Group Inc reported second quarter financial results on Tuesday that surpassed revenue expectations, driving shares up as much as 13% in after-hours trading. The Mediterranean fast-casual chain generated $365.4 million in revenue, a 31.3% increase year-over-year, beating the consensus estimate of $360.1 million. Adjusted earnings per share met analyst projections at $0.19.

Growth was supported by a 9.0% increase in same-restaurant sales and a 5.3% rise in guest traffic. The company expanded its footprint to 476 restaurants after opening 17 net new locations during the quarter. Net income rose 25.3% to $23.0 million, though restaurant-level profit margins declined to 25.7%.

Management attributed the margin dip to higher wage investments, third-party delivery costs, and the introduction of Pomegranate Glazed Salmon. CAVA reaffirmed its full-year 2026 guidance, projecting between 75 and 77 new restaurant openings and adjusted EBITDA between $181.0 million and $191.0 million.