Cava reports strong sales growth and exceeds Wall Street expectations in Q1 2025 earnings

From CNBC: 2025-05-15 16:32:00

Cava reported strong sales growth in its latest quarter, with same-store sales up 10.8% and traffic growth of 7.5%. The chain saw increased premium attachment and per-person spending, driven by diners trading up from fast food and down from casual dining. Despite positive results, Cava’s conservative outlook caused stock to fall 5% in extended trading.

In contrast, Chipotle’s transactions fell 2.3% in the first quarter, while Sweetgreen reported its first same-store sales decline since going public. McDonald’s CEO noted lower spending from low- and middle-income consumers, with U.S. same-store sales declining 3.6%. Cava reiterated its same-store sales forecast of 6% to 8% growth.

Cava exceeded Wall Street expectations in its fiscal first-quarter earnings, reporting 22 cents per share and $332 million in revenue. Net sales grew 28%, surpassing $1 billion on a 12-month trailing basis. The company raised its adjusted EBITDA forecast to $152 million to $159 million and plans to open 64 to 68 new locations.



Read more at CNBC: Cava (CAVA) Q1 2025 earnings