CAVA Group delivered another quarter of rapid expansion in the 12 weeks ended July 12, with growth coming from both a larger restaurant base and increased demand at mature locations. CAVA revenue advanced 31.3% to $365.4 million from $278.2 million a year earlier. Total consolidated revenue, which also includes revenue outside the company’s core restaurant segment, increased to $368.4 million from $280.6 million.

The central figure in the report was the 9.0% increase in same-restaurant sales. CAVA attributed 5.3 percentage points of that gain to higher guest traffic and 3.7 points to menu pricing and product mix. That composition indicates that most of the comparable growth came from additional entrees ordered rather than solely from customers paying more for each visit.

Traffic-led growth carries particular weight in the restaurant industry because pricing can support sales for only as long as customers continue to accept higher checks. An increase in transactions or entrees suggests broader engagement with the brand and provides a stronger foundation for future pricing, loyalty and unit development. CAVA defines guest traffic as the number of entrees ordered in restaurants and through digital channels, rather than a literal count of individual visitors.

The 9.0% comparable increase also represented a sharp acceleration from the 2.1% growth reported in the second quarter of fiscal 2025. CAVA began fiscal 2026 with 9.7% same-restaurant growth in its 16-week first quarter, including traffic growth of 6.8%. The second-quarter result therefore maintained a high sales-growth rate even as the traffic contribution moderated sequentially.

New restaurant development supplied the other major component of revenue growth. CAVA opened 17 net new restaurants during the quarter and ended the period with 476 locations, up from 398 a year earlier. The 19.6% increase in the restaurant count substantially expanded the company’s revenue base. Management said 94 net new restaurants opened during or after the second quarter of fiscal 2025 contributed to the year-over-year sales increase and were performing above its expectations.

The company’s average unit volume rose to approximately $3.1 million from $2.9 million in the prior-year quarter. CAVA calculates that metric using restaurants open for an entire trailing 13-period cycle, together with digital-kitchen sales. The improvement suggests that the expansion has not prevented established units from raising annualized sales productivity.

Chief Executive Brett Schulman said recent openings in locations including Mishawaka, Indiana, and Downingtown, Pennsylvania, were exceeding company expectations. Management views those results as evidence that the concept can travel beyond its earlier metropolitan markets. That portability is crucial to CAVA’s growth strategy because the financial case for a large national footprint depends on maintaining demand as the chain enters communities where Mediterranean fast-casual dining may be less established.

Restaurant-level profit increased 28.1% to $93.8 million from $73.3 million. Growth in profit dollars nevertheless lagged the 31.3% increase in restaurant revenue, causing restaurant-level margin to decline to 25.7% from 26.3%. The 60-basis-point contraction illustrates the near-term cost attached to menu innovation, digital fulfillment and workforce investment.

CAVA attributed the margin decline partly to input costs associated with the April launch of Pomegranate Glazed Salmon. The premium protein raised the average guest price and contributed positively to profit dollars, according to the company, but its ingredient cost diluted the percentage margin. A higher mix of third-party delivery orders had a similar effect: those transactions generated incremental sales and profit dollars but carried fees that reduced the margin rate.

Incremental wage investments also weighed on profitability. Those pressures were partly offset by leverage from higher sales, which allowed fixed or semi-fixed restaurant expenses to be spread over a larger revenue base. Occupancy costs declined to 6.3% of CAVA revenue from 6.8%, demonstrating the operating benefit of higher unit volumes. By contrast, food, beverage and packaging costs increased to 30.0% of restaurant revenue from 29.5%, while labor rose to 25.3% from 25.0%.

Other restaurant operating expenses increased to 12.8% of CAVA revenue from 12.4%, consistent with the pressure from third-party delivery and other growth-related costs. Total restaurant operating expenses rose 32.5% to $271.6 million, slightly faster than restaurant revenue. The resulting margin compression was limited, however, and the company’s 25.7% restaurant-level margin remained above the range it expects for the full fiscal year.

Digital transactions continued to represent a substantial part of the business, accounting for 39.0% of CAVA revenue. The mix was slightly below the 39.9% recorded in the first quarter but underscores the importance of app, website, catering and delivery orders to the chain’s operating model. Digital demand can improve convenience, customer data collection and throughput, but delivery commissions and fulfillment complexity can make channel mix an important determinant of restaurant margins.

At the consolidated level, operating income rose to $26.8 million from $19.6 million. General and administrative expenses increased to $39.8 million from $32.1 million, but declined as a percentage of revenue to 10.8% from 11.4%. Excluding equity-based compensation and executive-transition costs, adjusted general and administrative spending represented 9.3% of revenue, compared with 9.8% a year earlier.

CAVA said the improved expense ratio reflected leverage from higher sales, the timing of its company conference in the prior-year period and the timing of performance-based incentive compensation. Those benefits were partly offset by investments intended to support further growth. The figures show that the company is gaining some corporate-level scale even while building the management, development and operating infrastructure required for a larger system.

Net income increased 25.3% to $23.0 million from $18.4 million. Diluted earnings were $0.19 per share, compared with $0.16 in the prior-year quarter. The rate of net-income growth trailed operating-income growth partly because CAVA recorded a higher effective tax rate, reflecting a smaller tax benefit associated with equity-based compensation, as well as higher depreciation and amortization.

Adjusted EBITDA rose 30.0% to $54.7 million from $42.1 million, producing an adjusted EBITDA margin of 14.9%. Management said the gain reflected comparable sales growth and the performance of newly opened restaurants, partly offset by investments supporting future expansion. The non-GAAP measure excludes items including interest income, taxes, depreciation, equity compensation and certain other costs, and therefore should be considered alongside the company’s GAAP results.

Liquidity remained substantial as CAVA funded an accelerating development program. Cash and cash equivalents totaled $322.8 million at July 12, up from $282.9 million at the end of fiscal 2025. The company also held $112.8 million of investments measured at fair value. For the first 28 weeks of the fiscal year, operating activities generated $134.5 million of cash, while free cash flow totaled $44.8 million after property and equipment purchases.

During that 28-week period, CAVA revenue reached $799.8 million, up 31.8% from the corresponding period in 2025. Restaurant-level profit increased 30.3% to $202.7 million, while its margin eased to 25.3% from 25.6%. Consolidated net income for the period was $46.6 million, compared with $44.1 million a year earlier. The prior-year comparison benefited from an income-tax benefit, making the operating measures more informative for evaluating underlying growth.

CAVA reaffirmed its fiscal 2026 outlook rather than raising it after the strong quarter. The company continues to expect 75 to 77 net new restaurant openings, same-restaurant sales growth of 4.5% to 6.5%, restaurant-level margin of 23.7% to 24.3%, pre-opening costs of $22.0 million to $22.5 million, and adjusted EBITDA of $181 million to $191 million.

The unchanged comparable-sales forecast implies a slower rate over the balance of the year than the 9.0% achieved in the second quarter and the 9.7% reported in the first. That does not necessarily indicate an abrupt deterioration: annual guidance incorporates increasingly demanding comparisons, uncertain consumer spending and the volatility that can accompany new product launches. Still, the decision to reaffirm rather than increase the range establishes a more cautious second-half benchmark.

The development target also requires a busy remainder of the year. CAVA opened 20 restaurants in the first quarter and 17 in the second, for 37 gross openings through July 12. One permanent closure during the first 28 weeks left 36 net additions from the end of fiscal 2025. Reaching the full-year objective would therefore require approximately 39 to 41 further net openings, concentrating significant construction, hiring and training activity in the remaining periods.

Pre-opening costs are expected to reach as much as $22.5 million, reflecting the scale of that pipeline. New restaurants can initially pressure earnings through training, rent and other expenses incurred before sales begin. They also expand depreciation and corporate support requirements. CAVA’s ability to keep adjusted EBITDA growing at roughly the pace of revenue in the latest quarter indicates that those investments have so far been absorbed without a major loss of operating leverage.

The premium-protein strategy presents both an opportunity and a trade-off. Products such as Pomegranate Glazed Salmon can lift the average check and broaden the occasions for which customers consider CAVA, while reinforcing a differentiated menu. Management said the item contributed positively to margin dollars even though it reduced the margin percentage. Investors will be watching whether premium-product adoption remains incremental and traffic-friendly, rather than making the brand less accessible to value-conscious customers.

Restaurant-level margin remains another central measure. The second-quarter rate of 25.7% exceeded the full-year guidance range, but seasonal sales patterns and the timing of new-unit openings can produce meaningful quarterly differences. Food inflation, wages, delivery commissions and the cost of menu innovation could limit further expansion. Conversely, sustained traffic and higher average unit volumes would provide additional leverage over occupancy and other fixed costs.

The latest results strengthen the argument that CAVA’s expansion is supported by consumer demand across both established and new markets. Revenue growth was not dependent on unit development alone: comparable restaurants attracted more traffic, price and product mix contributed additional sales, and average unit volume increased. Profit dollars and adjusted EBITDA also expanded at close to the rate of restaurant revenue despite measured pressure on store-level margins.

The next test is whether CAVA can preserve that balance while opening dozens of restaurants in a compressed period. Execution will require a sufficient pipeline of sites, trained managers and restaurant teams, dependable supply capacity and consistent guest experiences. With management maintaining its annual outlook, second-half performance will determine whether the second quarter represents a durable traffic-led trajectory or a high point against tougher comparisons and continuing restaurant-cost pressures.