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CAVA shares jump after Q2 results beat expectations
Revenue and adjusted EPS topped Wall Street estimates, while same-restaurant sales grew 9% despite restaurant-level margin falling 60 basis points to 25.7%.
CAVA Group posted Q2 2026 results that beat analyst expectations, sending its stock up more than 14% the following day. The fast-casual restaurant chain reported revenue of $368.44 million, above the $360.09 million expected, and adjusted EPS of 19 cents versus a forecast of 18 cents, according to MarketBeat Ratings.
The stronger signal for investors was same-restaurant sales growth of 9%, supported by a 5.3% rise in guest traffic and a 3.7% increase in sales, driven by menu pricing and product mix, including the company's pita chips. MarketBeat Ratings notes that comparable-store sales growth is often viewed as a sign of economic health, though context over longer periods matters.
Not all the quarter's metrics improved. Restaurant-level profit margin fell 60 basis points year over year to 25.7%, with management citing higher input costs tied to the April launch of its Pomegranate Glazed Salmon, as well as a higher share of third-party delivery orders and higher labor costs.
On guidance, CAVA held its prior full-year outlook, with EBITDA guidance still below the $190.6 million analysts had penciled in at the midpoint. MarketBeat Ratings also pointed to concerns around consumer worry after a cyclospora outbreak linked to shredded iceberg lettuce, which the CEO said weighed on sales late in the quarter.