CAVA Group (NYSE: CAVA) reported fiscal Q4 and full-year results for the period ended December 28, 2025, highlighting its first full fiscal year above $1 billion in revenue. Q4 revenue rose 21.2% year over year to $272.8 million, with net income of $4.9 million and Adjusted EBITDA (non-GAAP) of $25.8 million. For fiscal 2025, revenue increased 22.5% to $1,169.3 million, supported by 72 net new restaurant openings and 4.0% same-restaurant sales growth. Full-year net income was $63.7 million, while Adjusted EBITDA increased to $152.8 million.
#Financial Performance Breakdown
Revenue growth in both the quarter and the year was driven primarily by unit expansion, with management noting that restaurants opened during or after Q4 fiscal 2024 have been exceeding performance expectations. Same-restaurant sales in Q4 increased 0.5%, composed of 1.9% from menu price and product mix, partially offset by a 1.4% decline in guest traffic. For the full year, same-restaurant sales increased 4.0%, including 2.4% from price and mix and 1.6% from guest traffic.
Profitability showed mixed signals at the restaurant level. Q4 restaurant-level profit margin was 21.4%, down 100 bps year over year, which management attributed to a higher mix of third-party delivery, technology costs tied to kitchen display system investments, higher food-related costs (including tariff impacts and a limited-time chicken shawarma offering), and incremental wage investments, partially offset by sales leverage. For the full year, restaurant-level profit margin was 24.4%, down 60 bps, with similar cost and mix pressures noted (including earlier grilled steak launch impacts, tariffs, and delivery mix). Balance sheet data showed cash and cash equivalents of $282.9 million (down from $366.1 million) and investments at fair value of $110.1 million, alongside total assets of $1.36 billion and total liabilities of $580.4 million. Operating cash flow was $184.8 million, with Free Cash Flow (non-GAAP) of $26.1 million after $158.7 million of property and equipment purchases.
#Strategic and Operational Highlights
CAVA’s growth engine remained heavily unit-led. The company opened 24 net new restaurants in Q4 and 72 net new restaurants in fiscal 2025, ending the year with 439 CAVA restaurants (up 19.6% year over year). Average unit volume (AUV) was reported at $2.9 million on a trailing thirteen-period basis, suggesting steady per-store productivity alongside aggressive expansion.
Digital continued to be a material channel: digital revenue mix was 38.9% in Q4 and 37.9% for the full year. Management also framed current initiatives as building for scale, citing investments that affected costs in the quarter (including kitchen display system technology) and growth-support spending (including higher pre-opening costs and broader support investments). The company’s disclosed restaurant cost drivers also indicate active menu and operational experimentation during the year, including limited-time offerings such as chicken shawarma and prior menu additions like grilled steak.
#Management Commentary and Outlook
CEO Brett Schulman characterized 2025 as a “milestone year,” pointing to market share gains, brand resonance with “increasingly discerning” consumers, and revenue surpassing $1 billion. For fiscal 2026, management guided to 74–76 net new openings and 3.0%–5.0% same-restaurant sales growth. The company expects restaurant-level profit margin of 23.7%–24.2%, pre-opening costs of $19.5–$20.0 million, and Adjusted EBITDA (non-GAAP) of $176.0–$184.0 million. Management cautioned that actual results may differ materially due to risks and uncertainties outlined in its forward-looking statements.
#Investor Takeaway and Risk Framing
The release underscores a business scaling rapidly through new unit growth while maintaining positive same-restaurant sales and sizable digital participation. At the same time, margin pressure in Q4 and modest Q4 traffic declines highlight sensitivity to delivery mix, wage investments, and food cost inputs (including tariffs and product initiatives). Fiscal 2026 targets imply continued expansion with moderated restaurant-level margin guidance. As always, these results reflect one period and depend on execution, cost control, and consumer demand trends.