CAVA Q1 2026: Traffic and expansion lift sales

CAVA reported $438.3 million in consolidated first-quarter 2026 revenue, up 32.1% from a year earlier. The May 19 results cover 16 weeks ended April 19.

Comparable sales rose 9.7%: traffic grew 6.8%, with 2.9% from price and mix. Traffic counts entrees, including digital orders; comparable restaurants have been open at least 365 days. 20 net openings took the company-owned base to 459.

Restaurant-level margin held at 25.1%, excluding depreciation, amortization and pre-opening costs.

The starting point#

CAVA entered 2026 after a slower finish to 2025. In its February 24 report, the company said fourth-quarter comparable sales increased 0.5%: traffic declined 1.4%, while menu prices and product mix contributed 1.9% growth.

Restaurant-level margin in that fourth quarter was 21.4%, down 1 percentage point from the final quarter of 2024. CAVA attributed pressure to a higher delivery mix, kitchen display system investments and wage increases. Food costs also rose, with tariffs and the limited-time chicken shawarma offering among the reasons. Higher sales partly offset those expenses.

The full-year restaurant margin declined 0.6 percentage points to 24.4%. The company cited similar pressures, including food costs associated with grilled steak, introduced in the second quarter of 2024.

For all of 2025, comparable sales grew 4.0%, including 1.6% traffic growth and 2.4% from price and mix. CAVA added 72 net restaurants that year, finishing with 439. The fourth quarter accounted for 24 of those net additions. Its initial 2026 outlook called for 74–76 net openings and comparable sales growth of 3–5%.

On May 19, CAVA raised those annual targets to 75–77 net openings and 4.5–6.5% comparable growth.

How expansion and costs connected#

Restaurant revenue rose $105.9 million to $434.4 million. The May 20 quarterly filing attributed $73.7 million of that growth to 92 net openings during or since the prior-year first quarter, spanning several quarters.

That cohort accounted for roughly 70% of the increase.

The filing also attributed $22.1 million in additional food, beverage and packaging costs to that cohort.

Average hourly wages rose 2%, including expansion of the assistant general manager role. Labor stayed at 25.7% of restaurant sales as higher sales absorbed wage investments.

Occupancy fell from 7.4% to 6.9% of restaurant sales as revenue grew. Other operating expenses rose from 12.5% to 13.3%, partly because of third-party delivery.

The August follow-through#

In its subsequent August 11 report, CAVA reported comparable sales growth of 9.0% for the 12-week second quarter ended July 12. Traffic grew 5.3%, with price and mix contributing 3.7%. Another 17 net openings brought the restaurant count to 476, and the company reaffirmed its annual outlook.

Restaurant-level profit reached $93.8 million, an increase of 28.1% over the corresponding quarter in 2025. Second-quarter restaurant-level margin was 25.7%, down 0.6 percentage points from a year earlier. CAVA attributed pressure to wage investments, more third-party delivery and input costs for salmon, which launched April 20. It said salmon and delivery reduced the margin percentage while adding profit dollars because they carried higher guest prices. That later report illustrates how a change in sales mix can affect the margin rate and dollars differently.