CAVA Group Reports Strong Full-Year 2025 Revenue, But Q4 Same-Restaurant Sales Decelerate Significantly
Summary
CAVA Group reported strong full-year 2025 revenue and unit growth, but Q4 saw a significant slowdown in same-restaurant sales and a decline in profit margins, with 2026 guidance reflecting continued expansion alongside anticipated margin pressure.
Key Events
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Full-Year 2025 Revenue Exceeds $1 Billion
CAVA Group's full-year 2025 revenue grew 22.5% to $1,169.3 million, marking the first time the company surpassed $1 billion in annual revenue. The company opened 72 net new restaurants, increasing its total count by 19.6% year-over-year.
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Q4 Same Restaurant Sales Decelerate Sharply
Same restaurant sales growth slowed significantly in the fourth quarter of 2025, increasing by only 0.5%, compared to 4.0% for the full fiscal year. This deceleration was partially driven by a 1.4% decrease in guest traffic.
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Q4 Profitability Margins Decline
CAVA Restaurant-Level Profit Margin decreased by 100 basis points to 21.4% in Q4 2025 compared to the prior year quarter, attributed to a higher mix of third-party delivery, technology costs, increased food/packaging costs, and wage investments.
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Free Cash Flow Decreases Significantly
Net cash provided by operating activities was $184.8 million for fiscal 2025, but Free Cash Flow decreased to $26.1 million from $52.9 million in fiscal 2024, representing a substantial reduction.
Analysis
CAVA Group delivered robust full-year 2025 results, exceeding $1 billion in revenue for the first time and expanding its restaurant footprint. However, the fourth quarter showed a notable deceleration in same-restaurant sales growth to 0.5% and a decrease in restaurant-level profit margin. Additionally, free cash flow for the full year saw a significant decline. The fiscal 2026 outlook projects continued unit expansion and overall revenue growth, but anticipates a slight contraction in restaurant-level profit margin, suggesting ongoing operational pressures despite strong top-line growth.
At the time of this filing, CAVA was trading at $73.25 on NYSE in the Trade & Services sector, with a market capitalization of approximately $7.9B. The 52-week trading range was $43.41 to $108.98. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.