Cava, the Mediterranean restaurant chain, surpassed Wall Street expectations for its first-quarter revenue, reporting a 10.8% rise in same-store sales for the quarter ending April 20. This growth was fueled by a 7.5% increase in customer visits, outperforming analysts’ forecasts of 10.3% sales growth.
According to CFO Tricia Tolivar, the company observed customers opting for higher-priced items such as pita chips and housemade juices, which helped boost the average spending per customer. Additionally, increased traffic was noted across all regions, income levels, restaurant formats, and meal times. This reflects a consumer trend where diners are shifting away from fast food and casual dining towards Cava’s offerings of bowls and pitas.
In contrast, many other restaurant companies have seen declines in same-store sales and traffic as consumers reduce dining out. For instance, Chipotle reported a 2.3% drop in transactions during the first quarter, Sweetgreen recorded its first quarterly sales decline since 2021, and McDonald’s U.S. same-store sales fell 3.6%, with CEO Chris Kempczinski noting lower spending among low- and middle-income consumers.
Despite its strong quarterly results, Cava reaffirmed its full-year same-store sales growth guidance of 6% to 8%, anticipating slower growth in the latter half of fiscal 2025. The company’s stock fell 5% in after-hours trading and has declined 11% year-to-date, due partly to cautious forecasts and concerns over tariffs.
For the quarter, Cava reported earnings of 22 cents per share, beating the 14-cent estimate, and revenue of $332 million, slightly above expectations of $327 million. Net income rose to $25.7 million from $14 million the previous year, partly boosted by a $10.7 million income tax benefit related to stock compensation. Revenue increased 28%, pushing Cava’s trailing 12-month revenue past the $1 billion mark, a significant achievement.
Cava also raised its outlook for the fiscal year, projecting adjusted EBITDA between $152 million and $159 million, up from $150 million to $157 million. The company now expects to open 64 to 68 new restaurants, increasing from an earlier forecast of 62 to 66 openings.