Mediterranean fast-casual chain reports 31% revenue growth while expanding its national footprint
CAVA Group (CAVA) continued its impressive growth trajectory during the second quarter of fiscal 2026, delivering strong financial results driven by higher customer traffic, restaurant expansion, and continued demand for its Mediterranean-inspired menu. The company reported revenue of $365.4 million, representing a 31.3% year-over-year increase, as both existing and newly opened locations exceeded expectations.
A key highlight of the quarter was 9.0% same-restaurant sales growth, supported by 5.3% growth in guest traffic, demonstrating that CAVA’s performance continues to be fueled by increased customer visits rather than relying solely on menu price increases. The remaining 3.7% of comparable sales growth came from pricing and product mix.
The company opened 17 net new restaurants during the quarter, bringing its total footprint to 476 locations, nearly a 20% increase from a year ago. Management noted that recently opened restaurants continue to outperform expectations across diverse markets, reinforcing confidence in the scalability of the brand.
Restaurant profitability remained healthy, with a 25.7% restaurant-level profit margin and $93.8 million in restaurant-level profit. While margins were modestly impacted by the launch of its premium Pomegranate Glazed Salmon menu item, increased third-party delivery, and higher wage investments, these pressures were partially offset by stronger sales volumes.
Bottom-line performance also improved. Net income increased 25.3% to $23 million, while Adjusted EBITDA rose 30% to $54.7 million, reflecting continued operating leverage despite ongoing investments to support future growth. Digital ordering remained an important part of the business, accounting for 39% of total revenue.
CAVA also generated strong cash flow, producing $134.5 million in operating cash flow year-to-date and $44.8 million in free cash flow, providing additional flexibility to fund expansion.
With accelerating customer traffic, a growing national footprint, strong unit economics, and continued profitability, CAVA appears well positioned to capitalize on the increasing popularity of Mediterranean cuisine and sustain its long-term growth strategy.
