TLDRs;
- CAVA shares jumped 25% following stronger-than-expected sales and profit outlook for 2026.
- Fourth-quarter revenue rose 21.2% as price increases offset minor traffic declines.
- The company plans 74-76 new restaurant openings, with EBITDA guidance between $176-$184 million.
- Investors monitor traffic trends and new seafood bowl launch to gauge sustained growth.
New York, Feb 25, 2026, Shares of CAVA Group, Inc. (NASDAQ: CAVA) surged roughly 25% to $84.88 in afternoon trading on Wednesday, following a strong outlook for fiscal 2026 that exceeded analyst expectations. The stock opened at $78.99 and fluctuated between $77.94 and $85.62 before settling higher, signaling renewed investor confidence in the fast-casual chain’s growth trajectory.
Investors have been closely watching restaurant stocks amid broader market volatility, as even minor shifts in pricing or customer traffic can drive notable swings. CAVA’s positive forecast and strategic pricing moves appear to have sparked optimism across the sector.
Robust Sales Outlook Drives Stock Rally
CAVA projected same-restaurant sales growth of 3% to 5% for fiscal 2026, surpassing the 3.16% anticipated by analysts. The company raised prices by 1.4% on select premium items while maintaining standard pricing on staple bowls. CEO Brett Schulman commented, “Consumer spending remains steady,” emphasizing that the company continues to balance value with quality.
The guidance also highlighted potential margin pressures from commodity costs and import tariffs, with profit margin expectations set between 23.7% and 24.2%. In after-hours trading, shares climbed an additional 8%, reflecting investor enthusiasm over the company’s strategic outlook.
Record Revenue and Expansion Plans
For the fourth quarter, CAVA reported revenue of $272.8 million, marking a 21.2% increase from the prior year. Net income stood at $4.9 million, while same-restaurant sales grew modestly by 0.5%, indicating that price adjustments and menu innovation offset a slight decline in guest traffic.
BREAKING NEWS: $CAVA Cava's Yearly Revenue Just Topped $1 Billion for the First Time and Its Stock Is Up 20%. Is the Restaurant Stock a Buy?
News & Disclaimerhttps://t.co/fjlJjyZskd@grok please provide the finance card for $CAVA
— Market Wire News (@marketwirenews) February 25, 2026
Annual revenue surpassed $1.16 billion, a milestone for the company. Schulman noted, “For the first time in our history, revenue has exceeded $1 billion.” Looking ahead, CAVA expects to open 74 to 76 new restaurants in fiscal 2026, with adjusted EBITDA projected between $176 million and $184 million.
Balancing Growth With Traffic and Margins
Despite headline gains, analysts are focused on underlying metrics, including customer traffic and store-level profit margins, which fell 100 basis points to 21.4%. Rapid expansion increases operational costs, and maintaining traffic levels across new locations remains a challenge. Rising food costs and tariffs could further squeeze profits if consumer spending slows, making price adjustments a delicate balancing act.
Investors are monitoring whether CAVA can sustain traffic while pursuing aggressive expansion. Overreliance on promotions or discounts could undermine margins and dampen the stock’s momentum, even amid strong top-line growth.
New Menu Launches Signal Continued Innovation
Looking ahead, CAVA is set to introduce a new seafood protein bowl before the quarter ends, signaling continued menu innovation to attract customers. Early-2026 demand trends will be critical in assessing the success of these offerings and the impact of recent pricing strategies.
Traders are closely watching customer response, which could influence both short-term stock performance and long-term growth prospects.
Considering a new stock? You may want to see what’s on our watchlist first.
Our team at Knockout Stocks follows top-performing analysts and market-moving trends to spot potential winners early. We’ve identified five stocks gaining quiet attention that could be worth watching now. Create your free account to unlock the full report and get ongoing stock insights.Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
