CAVA Q2 Results Show Sales Momentum
CAVA Q2 results showed traffic-driven 9.0% same-restaurant sales and $365.4 million revenue, lifted shares in extended trading and kept full-year guidance.
KEY TAKEAWAYS
- CAVA's Q2 revenue rose 31.3% as same-restaurant sales climbed 9.0%.
- Traffic growth drove comps, with guest visits up 5.3% and pricing adding 3.7 percentage points.
- Management reaffirmed full-year targets and plans 75 to 77 net-new openings.
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CAVA Group, Inc. reported fiscal second-quarter 2026 results on Aug. 11, 2026. The CAVA Q2 results highlighted rising guest traffic and new restaurant openings that boosted same-restaurant sales and led management to maintain full-year guidance.
Revenue, Profit, and Traffic Growth
For the quarter ended July 12, 2026, CAVA reported revenue of $365.4 million, a 31.3% increase from the prior year. Net income reached $23 million, with diluted earnings per share of $0.19, up from $0.16 a year earlier. Same-restaurant sales rose 9.0%, driven by a 5.3% increase in guest traffic and 3.7 percentage points from menu pricing and product mix. Brett Schulman said, “Our second quarter results underscore the continued strength of our category-defining brand and the resonance of our value proposition with today's consumer.”
Restaurant Openings, Cash Flow, and Guidance
CAVA opened 17 net new restaurants during the quarter, ending with 476 locations across 29 states and Washington, D.C. Adjusted EBITDA increased 30% to $54.7 million. Restaurant-level profit totaled $93.8 million, with a margin of 25.7%, down from 26.3% a year earlier. Cash from operations through the quarter was $134.5 million, and year-to-date free cash flow was $44.8 million, supporting ongoing expansion.
Management reaffirmed full-year 2026 targets for same-store sales growth of 4.5% to 6.5%, adjusted EBITDA between $181 million and $191 million, and 75 to 77 net-new restaurant openings. The company cited prudence due to food-safety concerns, a fluid macroeconomic and geopolitical environment, and lingering inflation. Both same-restaurant sales and adjusted EBITDA exceeded consensus estimates, with comps surpassing a 7.6% projection and adjusted EBITDA topping a $52.1 million forecast.
CAVA’s results reflect a quarter where traffic gains drove most of the comparable-store growth, with pricing and mix adding incremental benefit. The company’s strong cash generation supports further openings despite a modest decline in restaurant-level margins. Management maintained its full-year outlook while noting operational and macroeconomic risks that could affect performance in the second half of the year.
