Cava Group, Inc. (CAVA) · Nov 4, 2026 · Earnings
Miss — Diluted EPS $0.11 vs ~$0.12 consensus; revenue $356.4M vs ~$358.4M consensus
CAVA earnings fell just short of consensus as restaurant-level margins weakened, though the company raised its 2026 same-store sales guidance.
CAVA is in an aggressive national expansion phase: it reached 500 restaurants in September and is building toward a much larger footprint, with new units currently the main engine of revenue growth. The quarter was a modest earnings miss, not a growth breakdown. Total revenue reached $356.4 million, slightly below the published consensus of about $358.4 million, while diluted EPS was $0.11 versus roughly $0.12 expected. CAVA Revenue still grew 22.1%, helped by 102 newer restaurants, and the company said those locations were exceeding performance expectations.
| Q3 2026 | Q3 2025 | Consensus / Prior guide | |
|---|---|---|---|
| Revenue (Income Statement) | $356.4M (-) | $292.2M | ~$358.4M |
| Diluted EPS (Income Statement) | $0.11 | $0.12 | ~$0.12 |
| Same Restaurant Sales (Operating metrics) | 3.1% | 1.9% | — |
| Restaurant-level profit margin (Segment results) | 23.4% | 24.6% | — |
| FY same-store sales guide (Guidance table) | 6.0%-7.0% | — | 4.5%-6.5% |
| FY adjusted EBITDA guide (Guidance table) | $184M-$189M | — | $181M-$191M |
The underlying demand signal is mixed. Same-restaurant sales accelerated versus last year's 1.9%, with slightly positive traffic, but the 3.1% result was driven mainly by pricing and mix; management also said Cyclospora and broader fresh-produce concerns reduced sales by roughly 150 basis points. 〔0〕
The main pressure point is unit economics. Restaurant-level margin fell 120 basis points to 23.4%, despite higher sales, as labor investment, repairs and maintenance, and a greater third-party delivery mix absorbed much of the benefit. Adjusted EBITDA rose only 5.7% to $42.3 million, and its margin fell to 11.9% from 13.7%. 〔1〕
Management improved the sales outlook but gave up some margin flexibility. The full-year same-store sales range rose from 4.5%-6.5% to 6.0%-7.0%, and the restaurant-opening target increased by one unit at each end. But the restaurant-level margin ceiling fell from 24.3% to 24.0%, pre-opening costs jumped materially, and the EBITDA range narrowed rather than being lifted outright. That combination says demand and expansion remain healthy, while the cost of scaling is running heavier than before. 〔2〕
Bottom line: CAVA is still executing the expansion story, but this quarter exposed weaker margins and a small earnings miss. The raised sales outlook softens the setback; it does not erase the question of how profitably the next wave of restaurants can scale.
Q4 earnings report, early 2027
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