Why Cava Stock Surged Today

The Motley Fool

by newsfeedback@fool.com (Joe Tenebruso)

February 25, 2026

AI-Generated Deep Dive Summary

Cava Group (CAVA) saw its stock surge by over 26% on Wednesday, driven by strong financial performance and expansion efforts. The Mediterranean-style restaurant chain reported a 21.2% year-over-year increase in revenue to $272.8 million for its fiscal fourth quarter, ending December 28. This growth was fueled by both new store openings and higher sales at existing locations. Cava opened 24 stores during the quarter and an impressive 72 throughout fiscal 2025, bringing their total count to 439. Despite a modest 0.5% rise in same-restaurant sales, menu price increases and favorable product mix helped offset a 1.4% decline in guest traffic. CEO Brett Schulman highlighted that Cava's unique value proposition—bold flavors, healthy food, and exceptional hospitality—is resonating with consumers, particularly as they become more selective about their spending. Looking ahead, Cava plans to continue its aggressive expansion strategy, aiming to open 75 new restaurants in fiscal 2026. This, coupled with an expected 4% increase in same-store sales, should propel the company's adjusted EBITDA to between $176 million and $184 million next year, up from $152.8 million in 2025. Schulman emphasized that these gains reflect Cava's growing market share and its ability to adapt to evolving consumer preferences. For investors, this growth trajectory underscores Cava's strong position in the competitive restaurant industry. The company's ability to consistently open new locations while maintaining steady sales growth at existing stores bodes well for long-term profitability. As Cava continues to expand and refine its offerings, it appears well-positioned to capitalize on trends in both fast-casual dining and health-conscious eating. This stock movement highlights the potential rewards of investing in a brand that is successfully scaling while staying true to its core values. For those following the restaurant sector or considering investments in growth-oriented companies, Cava's performance offers compelling evidence of its strategic strength and consumer appeal.

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Originally published on The Motley Fool on 2/25/2026