CAVA Group Q2 Earnings Call Highlights

CAVA Group NYSE: CAVA reported second-quarter 2026 revenue growth of 31.3% as same-restaurant sales increased 9%, supported by 5.3% traffic growth and continued strength in new restaurant openings. Revenue rose to $365.4 million, while net income increased to $23 million from $18.4 million in the prior-year quarter. Diluted earnings per share were $0.19, compared with $0.16 a year earlier. Adjusted EBITDA increased 30% to $54.7 million. CAVA opened 17 net new restaurants during the quarter, ending the period with 476 locations across 29 states and Washington, D.C. The company said new restaurant productivity remained above 100%, while systemwide average unit volumes reached $3.1 million. The chain expanded into Indiana and Ohio during the quarter and plans to enter Las Vegas in the second half of 2026. CAVA also said it expects to expand into the Bay Area in 2027. Chief Financial Officer Tricia Tolivar said the company’s new-unit performance was broad-based across geographies and restaurant formats. She added that the 2024 restaurant cohort has produced double-digit same-restaurant sales and represents the company’s highest-performing vintage. CAVA maintained its full-year outlook for 75 to 77 net new restaurant openings and same-restaurant sales growth of 4.5% to 6.5%. Tolivar said the low end of that sales range would imply slightly negative same-restaurant sales, while the upper end would imply mid-single-digit growth. She said the company’s most recent same-restaurant sales performance had recovered to the mid-single digits after concerns over a Cyclospora outbreak affected sales earlier in the third quarter. CAVA said it does not source leafy greens from Mexico and does not serve iceberg lettuce, but it saw near-term sales pressure from broad consumer concerns about lettuce and fresh produce. Schulman said CAVA had not seen immediate effects from a separate Salmonella outbreak and does not source from associated farms. The company is continuing to consult with its food safety advisory council, he said. Restaurant-level profit rose 28.1% to $93.8 million, though restaurant-level margin declined to 25.7% of revenue from 26.3% a year earlier. Food, beverage and packaging costs represented 30% of revenue, up 50 basis points year over year, largely due to costs associated with the launch of salmon. Labor and related costs were 25.3% of revenue, up 30 basis points, driven in part by a 3% wage investment for team members. Occupancy and related expenses improved by 50 basis points to 6.3% of revenue due to...