CAVA Group Q4 revenue beats expectations

Overview

• Mediterranean fast-casual chain's Q4 revenue rose 21.2%, beating analyst expectations

• Same-restaurant sales increased by 0.5% in Q4

• Company opened 24 new restaurants in Q4

Outlook

• CAVA Group anticipates 74 to 76 net new restaurant openings in fiscal 2026

• Company expects same restaurant sales growth of 3.0% to 5.0% in fiscal 2026

• CAVA projects restaurant-level profit margin of 23.7% to 24.2% for fiscal 2026

Result Drivers

• NEW RESTAURANT OPENINGS - Revenue growth driven by 87 net new restaurant openings exceeding performance expectations

• SAME-RESTAURANT SALES - Same-restaurant sales rose 0.5%, with price and product mix increases offset by lower guest traffic

• PROFIT MARGIN PRESSURE - Profit margin decreased due to higher delivery and technology costs, and increased food and wage expenses

Company press release: ID:nBw8T8lrVa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for CAVA Group Inc is $75.00, about 9.7% above its February 23 closing price of $68.35

• The stock recently traded at 119 times the next 12-month earnings vs. a P/E of 84 three months ago

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