CAVA reported a positive first quarter, exceeding Wall Street’s expectations for both revenue and adjusted earnings. Management attributed the strong results primarily to higher guest traffic, the success of new restaurant openings, and disciplined menu innovation such as the return of the roasted white sweet potato. CEO Brett Schulman highlighted the company’s focus on “making Mediterranean cuisine accessible to communities across the country,” citing a deliberate strategy to maintain value for guests while resisting industry-wide discounting. The company’s ability to attract both new and returning guests helped drive same-store sales growth, supported by investments in digital engagement and loyalty initiatives.
Is now the time to buy CAVA? Find out in our full research report (it’s free for active Edge members).
CAVA (CAVA) Q1 CY2026 Highlights:
- Revenue: $438.3 million vs analyst estimates of $418.4 million (32.1% year-on-year growth, 4.7% beat)
- Adjusted EPS: $0.20 vs analyst estimates of $0.17 (16.2% beat)
- Adjusted EBITDA: $61.73 million vs analyst estimates of $57.31 million (14.1% margin, 7.7% beat)
- EBITDA guidance for the full year is $186 million at the midpoint, in line with analyst expectations
- Operating Margin: 5.8%, up from 4.7% in the same quarter last year
- Locations: 470 at quarter end, up from 393 in the same quarter last year
- Same-Store Sales rose 9.7% year on year (10.8% in the same quarter last year)
- Market Capitalization: $9.37 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From CAVA’s Q1 Earnings Call
- Sara Senatore (BofA): asked about new store productivity and the impact of the salmon launch on food costs. CFO Tricia K. Tolivar explained new stores outperformed across geographies and clarified salmon will run through Q4.
- David Tarantino (Baird): queried why margin guidance didn’t rise with stronger sales. Tolivar cited higher energy and packaging costs, plus the margin impact of salmon, as limiting factors.
- Danilo Gargiulo (Bernstein): requested clarity on what could drive results to the high or low end of guidance. CEO Brett Schulman emphasized menu innovation, marketing, and operational execution as key swing factors.
- Brian Harbour (Morgan Stanley): asked about early results from the salmon offering and its permanence. Schulman said initial guest response matched tests and salmon would remain at least through year-end.
- John Ivankoe (JPMorgan): explored catering expansion and asset flexibility. Schulman discussed ongoing market tests for catering, while Tolivar stressed disciplined use of balance sheet for organic growth.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the performance of new restaurant openings and their contribution to overall traffic, (2) the impact of digital initiatives and technology platforms on operational efficiency and guest engagement, and (3) the effect of rising energy and input costs on restaurant-level margins. Progress on menu innovation and further rollout of catering trials will also be important signposts for future growth.
CAVA currently trades at $80.28, up from $78.12 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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