CAVA Group Inc. shares surged 11.99% in pre-market trading on Tuesday, following a strong after-hours performance driven by the company's fiscal second-quarter results that exceeded Wall Street expectations.
The Mediterranean fast-casual chain reported revenue of $368.4 million, beating the consensus estimate of $360.5 million. Earnings per share came in at $0.19, topping the analyst forecast of $0.18. Same-restaurant sales rose 9.0%, driven by a 5.3% increase in guest traffic, while menu price increases and product mix contributed 3.7% to the growth. The company also noted that 94 net new restaurant openings during or subsequent to the second quarter of 2025 significantly boosted revenue.
CAVA reaffirmed its fiscal 2026 guidance, projecting 75 to 77 net new restaurant openings, same-restaurant sales growth of 4.5% to 6.5%, and adjusted EBITDA between $181 million and $191 million. The upbeat results and steady outlook helped offset concerns over recent food safety outbreaks and macroeconomic uncertainty, which had temporarily slowed sales.