CAVA’s restaurant expansion continues to outperform management’s expectations, with 94 net new restaurants opened during or subsequent to the second quarter of fiscal 2025, helping drive a 31.3% increase in Q2 2026 CAVA revenue to $365.4 million.
Management said the newer restaurants are exceeding performance expectations, supporting its view that the Mediterranean fast-casual concept can be successfully replicated across additional markets.
CAVA opened another 17 net new restaurants during Q2, bringing its total restaurant count to 476, up 19.6% from 398 locations a year earlier. The company had 459 restaurants at the end of Q1 and 439 at the end of fiscal 2025.
Growth is also coming from established locations rather than relying entirely on new restaurants. Same-restaurant sales increased 9%, including a 5.3% contribution from higher guest traffic and 3.7% from menu pricing and product mix.
Average unit volume increased to approximately $3.1 million from $2.9 million a year earlier, providing another indication of strengthening unit economics even as CAVA rapidly expands its footprint. Digital revenue represented 39% of quarterly sales.
Restaurant-level profit increased 28.1% to $93.8 million, although restaurant-level profit margin declined 60 basis points to 25.7% from 26.3%. CAVA attributed the margin pressure partly to costs associated with the launch of Pomegranate Glazed Salmon, a greater mix of third-party delivery and incremental wage investments.
The salmon launch and third-party delivery mix were dilutive to the percentage margin but still positively contributed to restaurant-level profit dollars because of higher guest pricing. Sales leverage partially offset those pressures.
Adjusted EBITDA increased 30% to $54.7 million, representing a 14.9% margin, compared with $42.1 million and a 15% margin a year earlier. Net income increased 25.3% to $23 million.
For the first 28 weeks of fiscal 2026, CAVA restaurant revenue increased 31.8% to $799.8 million, while restaurant-level profit increased 30.3% to $202.7 million. The company opened 38 restaurants during that period and recorded one permanent closure.
CAVA also remains well capitalized while funding its expansion. Cash and cash equivalents increased to $322.8 million as of July 12 from $282.9 million at the end of 2025, while investments at fair value totaled another $112.8 million. Year-to-date operating cash flow reached $134.5 million and free cash flow totaled $44.8 million.
The company reaffirmed its fiscal 2026 outlook, including 75 to 77 net new restaurant openings, same-restaurant sales growth of 4.5% to 6.5%, restaurant-level profit margin of 23.7% to 24.3% and Adjusted EBITDA of $181 million to $191 million.
KEY QUOTES:
“Our second quarter results underscore the continued strength of our category-defining brand and the resonance of our value proposition with today’s consumer. Same restaurant sales increased 9.0%, including guest traffic growth of 5.3%, and we opened 17 net new restaurants during the quarter.”
“From Mishawaka, Indiana to Downingtown, Pennsylvania, our newest restaurants continue to outperform our expectations, reinforcing the proven portability of our concept and the growing demand for our differentiated Mediterranean cuisine and welcoming hospitality.”
Brett Schulman, Co-Founder And Chief Executive Officer Of CAVA
