Cava revenue beats estimates as Mediterranean chain reports double-digit same-store sales growth

Cava Surges Ahead with Stellar Q1 2025 Performance
Mediterranean Chain Defies Industry Slump with Robust Growth
In a challenging landscape where many restaurant chains are grappling with declining sales, Cava Group, the fast-casual Mediterranean darling, has delivered a standout performance. On May 15, 2025, the company announced its fiscal first-quarter results, showcasing impressive revenue growth and double-digit same-store sales increases that have left Wall Street buzzing. Despite broader economic uncertainties, Cava’s strategic moves and consumer appeal are proving it’s a force to be reckoned with in the competitive dining sector.
A Recipe for Success: Q1 Highlights
Cava’s first-quarter numbers tell a story of resilience and savvy business strategy. The Washington, D.C.-based chain reported revenue of $331.8 million, surpassing analyst expectations of $327 million. This marks a remarkable 28% year-over-year increase, a milestone that saw Cava’s trailing 12-month revenue cross the $1 billion threshold—a significant achievement for a company that went public just two years ago.
Same-store sales, a key metric for restaurant performance, soared by 10.8%, outpacing projections of 10.3%. This growth was fueled by a 7.5% uptick in customer traffic, signaling that Cava is not just retaining its loyal fanbase but also attracting new diners. Net income for the quarter climbed to $25.71 million, or 22 cents per share, nearly doubling last year’s $13.99 million, or 12 cents per share.
Why Cava Stands Out
While competitors like Chipotle and Sweetgreen report sluggish transactions or declining same-store sales, Cava is thriving. Several factors contribute to its winning formula:

Menu Innovation: The introduction of grilled steak as a new menu item has resonated with customers, boosting sales of premium offerings like pita chips and housemade juices.
Loyalty Program Revamp: A refreshed loyalty program has deepened customer engagement, encouraging repeat visits through tailored rewards and a seamless digital experience.
Cautious Pricing Strategy: Unlike fast-food giants raising prices aggressively, Cava has kept increases modest, making its bowls and pitas an attractive value proposition.
Operational Efficiency: Investments in drive-thru lanes and digital ordering platforms have streamlined service, catering to on-the-go diners.

Chief Financial Officer Tricia Tolivar highlighted the chain’s broad appeal, noting, “We’re seeing positive traffic across all geographies, income levels, and restaurant formats.” This versatility has positioned Cava as a go-to option for consumers trading up from fast food or seeking healthier alternatives to casual dining.
Navigating Economic Headwinds
The restaurant industry is facing turbulent times, with many chains reporting reduced customer visits amid inflation and economic uncertainty. Fast-food leader McDonald’s saw U.S. same-store sales drop 3.6%, while Chipotle lowered its annual sales forecast due to cautious consumer spending. Cava, however, has bucked the trend, capitalizing on its niche as a Mediterranean fast-casual brand that blends health, flavor, and affordability.
The company’s limited exposure to tariffs—sourcing most ingredients domestically while importing select items like Greek olives—has also helped. CEO Brett Schulman emphasized a proactive approach to supply-chain management, stating, “We have no plans for further price hikes, as we’re offsetting tariff impacts through operational efficiencies.” This strategic foresight ensures Cava remains competitive without alienating price-sensitive customers.
Ambitious Expansion Plans
Cava isn’t resting on its laurels. The chain opened 15 new locations in Q1, bringing its total to 382 restaurants across 25 states and Washington, D.C. Looking ahead, Cava raised its full-year outlook, now planning to launch 64 to 68 new outlets, up from a previous target of 62 to 66. This aggressive expansion underscores confidence in its growth trajectory and the untapped potential of the Mediterranean cuisine market.
Financially, Cava boosted its adjusted EBITDA forecast to $152 million to $159 million, slightly above prior estimates. With average unit volumes reaching $2.9 million, each restaurant is a powerhouse of profitability, reinforcing Cava’s scalable business model.
Investor Sentiment and Market Reaction
Despite the stellar results, Cava’s stock dipped 4% in after-hours trading, reflecting investor concerns over its conservative same-store sales guidance of 6% to 8% for fiscal 2025. Analysts suggest this cautious outlook, combined with fears of tariff-related economic fallout, may have tempered enthusiasm. However, Cava’s shares have faced pressure this year, down 11% as of May 15, 2025, presenting a potential buying opportunity for long-term investors.
What’s Next for Cava?
Cava’s ability to outperform in a tough market highlights its unique positioning and operational strength. By continuing to innovate its menu, enhance digital capabilities, and expand strategically, the chain is poised to solidify its leadership in the fast-casual Mediterranean space. As consumer preferences shift toward healthier, flavorful dining options, Cava is well-equipped to capture a growing share of the $1 trillion U.S. restaurant market.
Conclusion: A Bright Future for Cava
Cava Group’s Q1 2025 performance is a testament to its resilience and vision. While the restaurant industry navigates choppy waters, Cava is charting a bold course, blending culinary excellence with smart business tactics. For diners seeking vibrant, health-conscious meals and investors eyeing a growth story, Cava is serving up something truly special. Keep an eye on this Mediterranean gem—it’s just getting started.