Revenue growth slowed to 22.0% in 2026Q3 from 32.1% in 2026Q1 while operating margin compressed to 4.2% from 9.2% in 2025Q2, indicating overhead growth is outpacing gross profit gains.
CAVA Group, Inc. (CAVA) annual income statement — 5-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 1.44B | 1.18B | 963.71M | 728.7M | 564.12M | 500.07M |
| Revenue Growth % | 27.03% | 22.41% | 32.25% | 29.17% | 12.81% | - |
| Cost of Goods Sold | 1.13B | 962.86M | 721.91M | 548.35M | 466.13M | 417.92M |
| COGS % of Revenue | - | 81.62% | 74.91% | 75.25% | 82.63% | 83.57% |
| Gross Profit | 306.58M | 216.81M | 241.81M | 180.35M | 97.98M | 82.15M |
| Gross Margin % | 21.32% | 18.38% | 25.09% | 24.75% | 17.37% | 16.43% |
| Gross Profit Growth % | - | -10.34% | 34.08% | 84.06% | 19.27% | - |
| Operating Expenses | 221.62M | 137.46M | 198.69M | 175.62M | 157.75M | 134.91M |
| OpEx % of Revenue | - | 11.65% | 20.62% | 24.1% | 27.96% | 26.98% |
| Selling, General & Admin | 161.44M | 137.46M | 120.5M | 101.49M | 70.04M | 64.79M |
| SG&A % of Revenue | - | 11.65% | 12.5% | 13.93% | 12.42% | 12.96% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 78.19M | 74.13M | 87.71M | 70.11M |
| Operating Income | 84.96M | 79.34M | 43.12M | 4.72M | -59.77M | -52.75M |
| Operating Margin % | 5.91% | 6.73% | 4.47% | 0.65% | -10.59% | -10.55% |
| Operating Income Growth % | - | 84.02% | 812.55% | 107.91% | -13.3% | - |
| EBITDA | 171.07M | 153M | 103.47M | 52.16M | -17.04M | -8.31M |
| EBITDA Margin % | 11.9% | 12.97% | 10.74% | 7.16% | -3.02% | -1.66% |
| EBITDA Growth % | 17.9% | 47.87% | 98.38% | 406.06% | -105.15% | - |
| D&A (Non-Cash Add-back) | 86.11M | 73.66M | 60.35M | 47.43M | 42.72M | 44.45M |
| EBIT | 85.38M | 70.8M | 60.95M | 31.42M | -14.78M | -32.46M |
| Net Interest Income | 14.19M | 15.04M | 16.47M | 8.85M | -47K | -4.81M |
| Interest Income | 14.19M | 15.04M | 16.47M | 8.85M | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 47K | 4.81M |
| Other Income/Expense | 416K | -8.54M | 16.79M | 9.32M | 872K | 15.48M |
| Pretax Income | 85.38M | 70.8M | 59.91M | 14.05M | -58.89M | -37.27M |
| Pretax Margin % | 5.94% | 6% | 6.22% | 1.93% | -10.44% | -7.45% |
| Income Tax | 20.67M | 7.06M | -70.41M | 768K | 93K | 117K |
| Effective Tax Rate % | 24.22% | 9.97% | -117.52% | 5.47% | -0.16% | -0.31% |
| Net Income | 64.7M | 63.74M | 130.32M | 13.28M | -58.99M | -37.39M |
| Net Margin % | 4.5% | 5.4% | 13.52% | 1.82% | -10.46% | -7.48% |
| Net Income Growth % | -52.92% | -51.09% | 881.32% | 122.51% | -57.76% | - |
| Net Income (Continuing) | 64.7M | 63.74M | 130.32M | 13.28M | -58.99M | -37.39M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.55 | 0.54 | 1.10 | 0.21 | -44.42 | -51.08 |
| EPS Growth % | -53.3% | -50.91% | 423.81% | 100.47% | 13.04% | - |
| EPS (Basic) | - | 0.55 | 1.14 | 0.22 | -44.42 | -51.08 |
| Diluted Shares Outstanding | 118.29M | 118.02M | 118.27M | 63.45M | 1.33M | 732K |
| Basic Shares Outstanding | 116.82M | 116.04M | 114.29M | 63.45M | 1.33M | 732K |
| Dividend Payout Ratio | - | - | - | - | - | - |
Quick answers to the most common questions about buying CAVA stock.
For fiscal year 2025, CAVA Group, Inc. (CAVA) reported total revenue of $1.18B. This represents a 135.9% increase compared to $500.1M in 2021.
CAVA Group, Inc. (CAVA) is profitable, generating $63.7M in net income for the fiscal year ending 2025 with a net profit margin of 5.4%.
CAVA Group, Inc. (CAVA) reported an operating income of $79.3M, resulting in an operating profit margin of 6.7%. This margin reflects the operational efficiency of the business before interest and taxes.
CAVA Group, Inc. (CAVA) generated $216.8M in gross profit for the year, representing a gross profit margin of 18.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Growth reliance on unit expansion
Metrics are mathematically derived from official filings.
Top-Line Growth Decelerating From Peak Conversion Cycle
Based on EDBL-reported quarterly figures, CAVA's revenue grew 22.0% year over year to $356.4M in 2026Q3, down from 32.1% in 2026Q1, suggesting the conversion-driven growth surge is moderating toward a unit-growth-dependent pace.
The sequential slowdown from the 2026Q1 peak of $438.3M to $356.4M in 2026Q3 is consistent with the Zoës conversion benefit fading. The remaining growth appears to depend on new-unit openings and their productivity, which investors should monitor closely for signs of comparable-store weakness. Growth durability therefore looks less certain than headline figures imply.
Gross Margin Volatility Tied to Input Costs
As reported in the income statement, gross margin ranged from 14.9% in 2025Q4 to 25.9% in 2026Q2, a swing that points to sensitivity in food, packaging, and labor cost inputs against pricing.
The wide quarterly range suggests limited pricing power to fully offset commodity and labor fluctuations in the short run. The recent recovery to 23.7% in 2026Q3 is encouraging but remains below the mid-20s levels seen in earlier periods. Investors should view the margin trajectory as dependent on input cost discipline rather than structural expansion.
Operating Leverage Fading as Overhead Grows
Operating margin compressed from 9.2% in 2025Q2 to 4.2% in 2026Q3 while SG&A held near $38M to $51M per quarter, indicating overhead is absorbing a growing share of gross profit.
The reported figures suggest operating income is not scaling as quickly as gross profit, which points to diminishing operating leverage during expansion. SG&A appears to be rising alongside the footprint build-out and pre-opening activity. Whether this reverses depends on new-unit productivity offsetting corporate cost growth.
Net Income Swings Distorted by Non-Operating Items
Net income of $78.6M in 2024Q4 versus operating income of $4.0M for the same quarter indicates reported earnings were heavily influenced by non-operating items rather than core restaurant operations.
The gap between operating and net income in 2024Q4 suggests a material one-time or non-operating contribution that should be excluded when assessing run-rate earnings. Stock-based compensation of $3.0M to $6.7M per quarter is a recurring cost that appears modest relative to net income but warrants tracking. Investors should normalize EPS before drawing conclusions about underlying profitability.
Premium Valuation Leaves Little Execution Margin
With net margin at 3.7% in 2026Q3 and EPS declining 8.3% year over year despite 22.0% revenue growth, the income statement suggests growth is not yet translating into earnings, which bears scrutiny against the company's valuation.
If unit openings slow or new-restaurant productivity disappoints, the gap between revenue growth and earnings growth could widen further. The compressed operating margin trend implies that the current growth narrative may not be fully reflected in profitability. Short-side analysts would likely focus on this divergence as the central vulnerability.