CAVA Group Stock Rallies After-Hours On FY26 Expectations Match, Q4 Earnings Beat
Synopsis
The company now sees FY26 adjusted core profit of $176 million to $184 million for FY26, in line with an analyst estimate of $182.70 million.
- In FY26, same restaurant sales is expected to increase 3%-5%.
- In Q4, the restaurant brand reported diluted earnings per share of $0.04 and revenue of $272.8 million.
- Restaurant-level profit margin, however, took a 100 basis point hit due to a higher mix of third-party delivery, technology costs, among other factors.
Shares of CAVA Group Inc. (CAVA) gained 9% after-hours on Tuesday on the heels of the company putting forth fiscal year 2026 guidance in line with Wall Street expectations.
The company now sees adjusted core profit of $176 million to $184 million for FY26, in line with an analyst estimate of $182.70 million. Same restaurant sales, meanwhile, is expected to increase 3%-5%.
Q4 Numbers
For the fourth-quarter (Q4), the restaurant brand reported diluted earnings per share of $0.04, below the $0.69 reported in the corresponding quarter of 2024, but above an analyst estimate of $0.03, as the company opened multiple new restaurants.
Revenue for the three month came in at $272.8 million, marking a growth of 21.2%, and beating the consensus estimate of $268.04 million. Same store sales increased 0.5%, although restaurant-level profit margin took a 100 basis point hit due to a higher mix of third-party delivery, technology costs associated with kitchen display system investments, and higher food, beverage, and packaging costs.
“For the first time in our history, revenue surpassed $1 billion for a full fiscal year in 2025, growing 22.5% for the year. We opened 72 net new restaurants and delivered same-restaurant sales growth of 4.0%,” said CEO Brett Schulman. The CEO also highlighted that the company delivered despite “strong prior-year comparisons and a dynamic macroeconomic environment.”
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around CAVA stock rose from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume increased from ‘high’ to ‘extremely high’ levels.
A Stocktwits user said they expect the stock to tumble on Wednesday morning.
They also highlighted the company’s high price-to-earnings ratio.
CAVA stock has fallen 35% over the past 12 months.
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