CAVA Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• CAVA Revenue grew 22.1% year-over-year to $353.7 million for the quarter ended October 4, 2026, compared to $289.8 million in the prior year quarter.
• Net Income was $13.2 million for the quarter, down from $14.7 million in the prior year quarter.
• Adjusted EBITDA increased 5.7% to $42.3 million, or 11.9% of revenue, compared to $40.0 million in the prior year quarter.
• CAVA Restaurant-Level Profit was $82.7 million, representing a 16.2% increase year-over-year, with a Restaurant-Level Profit Margin of 23.4% (down 120 basis points from 24.6% in the prior year quarter).
• Year-to-date net cash provided by operating activities was $181.6 million, with Free Cash Flow of $37.1 million.
• Average Unit Volume (AUV) was $3.1 million, up from $2.9 million in the prior year quarter.
• Digital Revenue Mix was 38.5%.
• General and administrative expenses were $38.1 million (10.7% of revenue), compared to $31.5 million (10.8% of revenue) in the prior year quarter.
• G&A expenses, excluding equity-based compensation and executive transition costs, were $33.6 million (9.4% of revenue), remaining flat as a percentage of revenue compared to the prior year.

Guidance and Future Outlook:

• Fiscal full-year 2026 Net New CAVA Restaurant Openings guidance was updated to 76 to 78, up from the previous range of 75 to 77.
• Fiscal full-year 2026 Same Restaurant Sales guidance was raised to 6.0% to 7.0%, up from the previous range of 4.5% to 6.5%.
• Fiscal full-year 2026 CAVA Restaurant-Level Profit Margin guidance was adjusted to 23.7% to 24.0%, down from the previous range of 23.7% to 24.3%.
• Fiscal full-year 2026 Pre-opening costs guidance was increased to $28.5 to $29.5 million, up from the previous range of $22.0 to $22.5 million.
• Fiscal full-year 2026 Adjusted EBITDA guidance was raised to $184.0 to $189.0 million, up from the previous range of $181.0 to $191.0 million.
• Management stated they will continue investing in teams and guests to support durable growth.

Business Segments and Product Lines:

• Net New CAVA Restaurant Openings totaled 24 during the quarter, bringing the total restaurant count to 500, a 20.5% year-over-year increase.
• The company opened its 500th restaurant ahead of schedule.
• Same Restaurant Sales increased 3.1%, driven by a 3.0% increase from menu price and product mix and slightly positive Guest Traffic.
• Same Restaurant Sales decreased by approximately 150 basis points due to the impact of Cyclospora and broader concerns around fresh produce consumption.
• Restaurant-Level Profit Margin decrease was driven by incremental labor investments, a higher mix of third-party delivery, and investments in repairs and maintenance, partially offset by leverage from increased Same Restaurant Sales.
• Third-party delivery is dilutive to margin rate but has a positive impact on margin dollars due to a higher guest price.

Market and Competitive Landscape:

• Management reported gaining market share despite broader industry pressures.
• Net New CAVA Restaurant Openings during or subsequent to the third quarter of fiscal 2025 are exceeding performance expectations.
• The company operates in a highly competitive industry with a rapidly changing environment.

Risks and Challenges:

• Food safety issues and food-borne illness concerns (specifically Cyclospora) may harm the business.
• Broader concerns around fresh produce consumption impacted sales.
• Labor costs and labor shortages, along with difficulties in hiring, training, motivating, and retaining team members, are potential risks.
• Increases in food, commodity, energy, and other costs could adversely affect results.
• Third-party delivery dilutes margin rates.
• New restaurants may not be profitable or may negatively impact sales at existing locations.
• Reliance on third parties and potential supply chain interruptions or shortages.
• Risks associated with leasing property and maintaining or increasing prices to protect margins.
• Potential security breaches of information systems or data.
• Complex and evolving laws and regulations regarding privacy, data protection, cybersecurity, and sustainability.

Management Commentary and Tone:

• Brett Schulman, Co-Founder and CEO, stated: "In the third quarter, despite broader industry pressures, we continued to gain market share, expand our footprint, and see strong performance from our new restaurants."
• Management expressed confidence in the strength of Net New CAVA Restaurant Openings and the performance of existing locations.
• The tone emphasized strengthening lasting relationships with teams and guests to support durable growth.

Other Key Points:

• The company operates more than 500 restaurants across 31 states and Washington, D.C.
• CAVA employs more than 15,000 team members.
• The company hosts an earnings conference call on November 4, 2026, at 5:00 PM Eastern Time.
• The fiscal year ends on the last Sunday of the calendar year.
• Non-GAAP financial measures including Adjusted EBITDA, Free Cash Flow, and G&A excluding equity-based compensation and executive transition costs are presented with reconciliations to GAAP.
• A reconciliation of forward-looking fiscal 2026 Adjusted EBITDA to net income cannot be provided without unreasonable effort.