CAVA Q3 2026 Revenue Rises 22% as Restaurant Count Reaches 500

CAVA Group (CAVA) reported a 22.1% year-over-year increase in third-quarter fiscal 2026 revenue, supported by continued restaurant expansion and positive same-restaurant sales. The Mediterranean restaurant chain opened 24 net new locations during the quarter, bringing its restaurant count to 500, while updating its full-year outlook to reflect more openings, higher same-restaurant sales growth and increased pre-opening costs.

CAVA revenue reached $353.7 million, up from $289.8 million in the third quarter of 2025. Same-restaurant sales increased 3.1%, compared with 1.9% growth a year earlier. The company’s restaurant base expanded 20.5% from 415 locations to 500.

Net income was $13.2 million, compared with $14.7 million in the prior-year quarter. Adjusted EBITDA, a non-GAAP measure, rose 5.7% to $42.3 million from $40.0 million.

Restaurant profit grows as margin narrows

CAVA restaurant-level profit increased 16.2% year over year to $82.7 million. Restaurant-level profit margin was 23.4%, down from 24.6% in the third quarter of 2025 and below the 25.7% recorded in the preceding quarter.

The combination of 3.1% same-restaurant sales growth and a larger restaurant footprint indicates that new-unit expansion remained an important contributor to overall revenue growth. CAVA’s strategic priorities for 2026 include expanding into more communities, developing closer guest relationships, improving restaurant execution and operating as a high-performing team.

The company also highlighted investments in digital operating tools built on its CAVACore data foundation. Its CAVA Command Center and Operator Portal are designed to give restaurant general managers access to key results and controls for digital sales channels, unavailable menu items and digital-order capacity. CAVA also introduced limited-time seasonal products, including the Greek Goddess Salmon Bowl and Pomegranate Apple Drink, while using in-person events to support guest engagement.

Full-year outlook updated

For fiscal 2026, CAVA now expects 76 to 78 net new restaurant openings, compared with its prior range of 75 to 77. Same-restaurant sales growth is projected at 6.0% to 7.0%, versus the previous forecast of 4.5% to 6.5%.

The company expects a full-year restaurant-level profit margin of 23.7% to 24.0%. Its earlier outlook called for 23.7% to 24.3%, leaving the lower end unchanged while reducing the upper end.

Pre-opening costs are now expected to total $28.5 million to $29.5 million, up from the prior range of $22.0 million to $22.5 million. Adjusted EBITDA is projected at $184 million to $189 million, narrowing the previous range of $181 million to $191 million around the same midpoint.

CAVA said it could not provide a reconciliation of projected adjusted EBITDA to net income without unreasonable effort because certain future adjustments cannot be accurately forecast.

Cash flow and expansion spending

Net cash provided by operating activities totaled $181.6 million for the first three quarters of 2026, up from $144.5 million in the comparable 2025 period. Purchases of property and equipment increased to $144.5 million from $121.3 million, resulting in year-to-date free cash flow of $37.1 million, compared with $23.3 million a year earlier. Free cash flow is a non-GAAP measure defined as operating cash flow less property and equipment purchases.

CAVA’s outlook remains subject to execution and operating risks. The company identified competition, site selection, the profitability of new restaurants, potential effects on existing locations, consumer demand, food and labor costs, supply-chain management and food-safety concerns among its key uncertainties. It also cited risks involving digital and delivery operations, cybersecurity, regulatory requirements and adverse weather. These factors could affect the pace and economics of expansion as the company continues adding locations.