CAVA earnings analysis
What we found in CAVA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CAVA delivered strong year-over-year growth, with revenue up 31.3% to $368.436 million, diluted EPS rising to $0.19 from $0.16, and operating margin improving to 7.3% from 7.0%. Restaurant traffic, same-store sales, and new-unit growth were favorable, but restaurant-level margin declined 60 basis points to 25.7% and expansion-related costs increased. Liquidity remains strong with $322.763 million of cash, no Credit Facility borrowings, and $134.520 million of operating cash flow, although third-quarter revenue has been adversely affected by broader consumer concerns related to a cyclosporiasis outbreak.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 31.3% year over year
- Revenue was $368.436 million, up $87.821 million, or 31.3%, from $280.615 million in the prior-year quarter. Revenue declined from $438 million in the preceding quarter based on the provided quarterly history.
- EPS and net income increased
- Diluted EPS was $0.19 versus $0.16 in the prior-year quarter, while net income increased 25.3% to $23.017 million from $18.368 million. EPS was modestly below the $0.20 reported in the preceding quarter based on the provided history.
- Operating margin expanded year over year
- Operating income rose 36.7% to $26.846 million from $19.645 million, lifting operating margin to 7.3% from 7.0% year over year and 5.8% in the preceding quarter based on the provided history.
- Traffic and unit growth remained strong
- CAVA same-restaurant sales increased 9.0%, including 5.3% guest-traffic growth and 3.7% menu price/product-mix growth. The company opened 17 restaurants during the quarter and ended with 476 locations versus 398 a year earlier.
- Operating cash flow strengthened
- Operating cash flow increased 36.0% to $134.520 million from $98.895 million for the first 28 weeks. Property and equipment purchases were $89.738 million, implying approximately $44.782 million of operating cash flow after capital expenditures.
- Strong liquidity with no debt drawn
- Cash and cash equivalents increased to $322.763 million from $282.917 million at fiscal year-end, while the company had no borrowings under its Credit Facility and $149.1 million of available capacity, net of $0.9 million of letters of credit.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Restaurant-level margin contracted
- CAVA restaurant-level profit margin declined to 25.7% from 26.3% year over year. Food, beverage, and packaging costs increased to 30.0% of CAVA revenue from 29.5%, while labor costs increased to 25.3% from 25.0%.
- Food-safety concerns pressure Q3 sales
- Management reported that a multistate cyclosporiasis outbreak associated with iceberg lettuce adversely impacted third-quarter revenue to date; the duration and extent remain uncertain. No ingredients in CAVA's supply chain have been implicated, and the company said the impact appears to be moderating.
- Expansion costs are increasing
- Pre-opening costs rose 32.3% to $6.741 million from $5.096 million, and impairment and asset disposal costs increased to $1.229 million from $1.074 million in the quarter as the company invests in restaurant expansion.
- Delivery and wage inflation weigh on costs
- CAVA other operating expenses increased 35.3% to $46.659 million and rose to 12.8% of CAVA revenue from 12.4%, primarily due to a higher mix of third-party delivery. Average hourly wages also increased approximately 3%.
- Capital intensity remains elevated
- For the first 28 weeks, capital expenditures were $89.738 million and operating lease assets obtained in exchange for lease liabilities were $74.288 million, reflecting substantial expansion commitments despite higher cash generation.
- New derivative litigation disclosed
- The company disclosed a derivative action filed on July 22, 2026 seeking unspecified monetary damages, attorneys' fees and disgorgement of alleged trading profits; the action is preliminary and does not seek damages from CAVA. The filing states there have been no material changes to the risk factors in the 2025 Annual Report.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.19
- Operating margin
- 7.3%
- Segment
- CAVA: revenue $365.433 million, up 31.3% year over year; restaurant-level profit $93.812 million, with a 25.7% margin versus 26.3% prior year.
- Segment
- CAVA Foods/Other: revenue $3.003 million, up 26.9% year over year; it is below quantitative reporting thresholds and is included as Other revenue.
What they said about what is next.
The 10-Q provides no explicit quantitative revenue, EPS, or other company guidance. Management states that cash from operations, cash on hand, and available Credit Facility capacity should be sufficient for anticipated requirements over the next twelve months and foreseeable future.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 19, 2026
- CAVA Group reported a strong Q1 2026 with revenue reaching $438.3 million, surpassing expectations by approximately 4.7%. The company demonstrated solid growth, achieving an EPS of $0.20, which is higher than the…
- 10-K · February 25, 2026
- CAVA reported accelerating scale in fiscal 2025 with total revenue of approximately $1.18 billion (sum of quarterly revenues $332M, $281M, $292M, $275M) and a growing digital mix (37.9% in fiscal 2025). The company…
- 10-Q · November 5, 2025
- CAVA reported a strong top-line quarter with revenue of $292,238 for the twelve weeks ended October 5, 2025, up $48,421 (≈19.9%) versus $243,817 in the prior-year period. Income from operations rose to $17,121…
- 10-Q · August 13, 2025
- CAVA reported twelve-week revenue of $280,615,000 and diluted EPS of $0.16 for the period ended July 13, 2025. Revenue rose versus the prior-year quarter ($233,495,000) and operating income increased to $19,645,000…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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