While most restaurant stocks are grinding through a cautious consumer environment, CAVA Group just dropped a quarter that makes the rest of the industry look like it’s standing still.
The Mediterranean fast-casual chain reported fiscal year 2025 revenue of $1.17 billion — crossing the billion-dollar mark for the first time in company history — representing 22.5% growth over the prior year. Same-restaurant sales grew 4% for the full year. The company opened 72 net new locations, bringing its total restaurant count to 439. And it’s not slowing down: CAVA is guiding for 74 to 76 new openings in fiscal 2026.
For the fourth quarter specifically, revenue hit $272.8 million (up 21.2%), with restaurant-level profit margins at 21.4%. Net income came in at $4.9 million, while adjusted EBITDA was $25.8 million. Same-restaurant sales rose 0.5% in Q4 — not explosive, but respectable given the prior-year comps and a consumer that’s clearly tightening the belt on dining out.
Here’s what makes CAVA’s story unusual in a market full of overhyped growth narratives: the unit economics actually work. Restaurant-level profit margin was 24.4% for the full year. Average unit volume hit $2.9 million. Digital revenue accounted for nearly 38% of total sales. These aren’t “we’ll figure out profitability later” numbers. This is a company generating $152.8 million in adjusted EBITDA and $26.1 million in free cash flow while growing its footprint by almost 20%.
The stock reflects the enthusiasm. CAVA shares are up roughly 40% year-to-date in 2026, making it one of the best-performing restaurant stocks in the market. Stifel has flagged significant further upside. Wall Street’s thesis is straightforward: CAVA is doing to Mediterranean food what Chipotle did to burritos — creating a new fast-casual category with massive runway for expansion.
CEO Brett Schulman isn’t being shy about it either. “Our momentum and market share gains underscore the strength of our value proposition,” he said on the earnings call. The company is investing in kitchen display systems (now live in 370 locations), rolling out new menu items like pomegranate-glazed salmon, and leaning into third-party delivery even though it creates a slight margin headwind.
The risk? Valuation. At these levels, CAVA is priced for near-perfection, and the 0.5% Q4 same-store sales figure — dragged down by a 1.4% drop in guest traffic — shows that even a hot brand isn’t immune to consumer pressure. Tariffs are also creeping into the cost structure, hitting food and packaging costs in Q4.
But for growth investors looking for a real business with real margins and a long runway of expansion ahead, CAVA is one of the clearest stories in the restaurant space right now. 439 locations today, with ambitions that suggest this is still just the appetizer.