Mediterranean fast-casual restaurant brand CAVA (NYSE: CAVA) delivered a first quarter for fiscal 2026 that surpassed Wall Street’s expectations across revenue, earnings, and comparable sales, prompting the company to raise multiple components of its full-year outlook. Revenue for the quarter came in at $438.3 million, representing 32.1% growth compared to the same period last year and well ahead of analyst estimates of approximately $418 million.
Earnings per share of $0.20 exceeded the consensus estimate of $0.17, while same-restaurant sales growth of 9.7% significantly outpaced the 6.2% that analysts had modelled. Guest traffic growth of 6.8% was particularly notable given the wider macroeconomic pressures that have weighed on consumer discretionary spending, suggesting that CAVA’s positioning at the intersection of value and health-conscious eating continues to resonate meaningfully with its customer base.
“Amid today’s broader macroeconomic environment and geopolitical uncertainty, our first quarter results reflect our position as a clear industry leader and our ability to meet the moment for the modern consumer,” said Brett Schulman, co-founder and chief executive officer. The company opened 20 net new restaurants during the quarter, expanding its total footprint to 459 locations, a 20.2% increase year over year, with recent openings in Cincinnati, St. Louis, and Columbus marking CAVA’s continued push into the Midwest.
Restaurant-level profit margin held steady at 25.1%, unchanged year over year despite the pressures of rapid expansion, and adjusted EBITDA rose 37.6% to $61.7 million, demonstrating that the Business is generating operating leverage at scale. Digital sales accounted for 39.9% of total revenue during the quarter, a figure that highlights the platform’s strong omnichannel penetration and provides a durable channel for data-driven marketing.
For the full year, management raised its adjusted EBITDA guidance to a range of $181 million to $191 million, up from the prior forecast of $176 million to $184 million. Same-restaurant sales growth guidance was upgraded to 4.5% to 6.5% from the previous range of 3% to 5%, reflecting the stronger-than-expected traffic momentum seen in the opening quarter. The company also slightly increased its net new restaurant opening target to 75 to 77 locations for the year.
Jefferies maintained its Buy rating on the stock following the report and lifted its price target to $95 from $85, pointing to the quarter as evidence of structural brand strength and capable execution. The introduction of the new Pomegranate-Glazed Salmon dish drew specific mention in commentary around menu innovation, signalling that CAVA remains willing to evolve its offering rather than rely solely on its core Mediterranean staples.
The stock jumped sharply in premarket trading on Wednesday following the Tuesday evening release, with shares set to open more than 10% higher at around $87. The valuation, however, remains a point of debate. The shares trade at a price-to-earnings ratio above 140, and despite the strong operational execution, some analysts have flagged that the stock appears stretched relative to its fair value. At that multiple, sustained delivery against elevated expectations is not optional but mandatory.