Revenue growth remains strong at 32.1% year-over-year, though gross margins have contracted to 19.6% in 2026Q1, reflecting significant pressure from input costs.
| Sales/Revenue | 1.29B | 1.18B | 963.71M | 728.7M | 564.12M | 500.07M |
| Revenue Growth % | 24.08% | 22.41% | 32.25% | 29.17% | 12.81% | - |
| Cost of Goods Sold | 1.05B | 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 | 239.28M | 216.81M | 241.81M | 180.35M | 97.98M | 82.15M |
| Gross Margin % | 18.61% | 18.38% | 25.09% | 24.75% | 17.37% | 16.43% |
| Gross Profit Growth % | - | -10.34% | 34.08% | 84.06% | 19.27% | - |
| Operating Expenses | 147.11M | 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 | 147.11M | 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 | 0 | 0 | 78.19M | 74.13M | 87.71M | 70.11M |
| Operating Income | 92.17M | 79.34M | 43.12M | 4.72M | -59.77M | -52.75M |
| Operating Margin % | 7.17% | 6.73% | 4.47% | 0.65% | -10.59% | -10.55% |
| Operating Income Growth % | - | 84.02% | 812.55% | 107.91% | -13.3% | - |
| EBITDA | 170.48M | 153M | 103.47M | 52.16M | -17.04M | -8.21M |
| EBITDA Margin % | 13.26% | 12.97% | 10.74% | 7.16% | -3.02% | -1.64% |
| EBITDA Growth % | 42.58% | 47.87% | 98.38% | 406.06% | -107.48% | - |
| D&A (Non-Cash Add-back) | 78.32M | 73.66M | 60.35M | 47.43M | 42.72M | 44.54M |
| EBIT | 89.81M | 70.8M | 60.95M | 31.42M | -14.78M | -32.46M |
| Net Interest Income | 14.51M | 15.04M | 16.47M | 8.85M | -47K | -4.81M |
| Interest Income | 14.51M | 15.04M | 16.47M | 8.85M | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 47K | 4.81M |
| Other Income/Expense | -11.68M | -8.54M | 16.79M | 9.32M | 872K | 15.48M |
| Pretax Income | 80.48M | 70.8M | 59.91M | 14.05M | -58.89M | -37.27M |
| Pretax Margin % | 6.26% | 6% | 6.22% | 1.93% | -10.44% | -7.45% |
| Income Tax | 18.88M | 7.06M | -70.41M | 768K | 93K | 117K |
| Effective Tax Rate % | 23.46% | 9.97% | -117.52% | 5.47% | -0.16% | -0.31% |
| Net Income | 61.6M | 63.74M | 130.32M | 13.28M | -58.99M | -37.39M |
| Net Margin % | 4.79% | 5.4% | 13.52% | 1.82% | -10.46% | -7.48% |
| Net Income Growth % | -56.63% | -51.09% | 881.32% | 122.51% | -57.76% | - |
| Net Income (Continuing) | 61.6M | 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) | 0.52 | 0.54 | 1.10 | 0.21 | -44.42 | -51.08 |
| EPS Growth % | -56.53% | -50.91% | 423.81% | 100.47% | 13.04% | - |
| EPS (Basic) | - | 0.55 | 1.14 | 0.22 | -44.42 | -51.08 |
| Diluted Shares Outstanding | 118.32M | 118.02M | 118.27M | 63.45M | 1.33M | 732K |
| Basic Shares Outstanding | 116.34M | 116.04M | 114.29M | 63.45M | 1.33M | 732K |
| Dividend Payout Ratio | - | - | - | - | - | - |
Margin compression from inflation
According to recent financial disclosures, CAVA achieved a 32.1% year-over-year revenue growth in 2026Q1, signaling that the company's aggressive expansion strategy continues to resonate with consumers despite the transition away from the historical tailwinds provided by the conversion of legacy Zoës Kitchen locations.
The sustained double-digit growth suggests that the brand's Mediterranean value proposition is successfully capturing market share in new geographic territories. Investors should monitor whether this pace can be maintained through purely organic greenfield development, which typically carries higher execution risk than site conversions.
As reported in the latest quarterly filings, CAVA's gross margin contracted to 19.6% in 2026Q1, a notable decline from the 26.7% peak observed in 2024Q2, reflecting the mounting pressure of input costs and the operational complexities inherent in scaling a vertically integrated supply chain.
The erosion of gross margins suggests that the company may be struggling to fully offset rising commodity and labor costs through menu pricing or operational efficiencies. This trend warrants further investigation into whether the current margin profile represents a structural floor or if further volatility in Mediterranean-specific ingredients could lead to additional compression.
Based on the provided income statement data, CAVA's operating income reached $34.7M in 2026Q1, indicating that the company is beginning to realize meaningful operating leverage as revenue growth outpaces the incremental costs associated with managing a larger, more complex restaurant footprint.
The ability to scale operating income while simultaneously funding rapid unit growth suggests that management is successfully controlling overhead expenses. However, the sustainability of this leverage depends on the company's ability to maintain high average unit volumes as it enters more competitive, non-core markets.
Data from recent income statements reveals that while CAVA is currently profitable, the volatility in quarterly net income and the reliance on stock-based compensation, which totaled $6.7M in 2026Q1, suggest that the company's earnings quality may be less robust than headline figures imply.
Short-term fluctuations in profitability may indicate that the business model remains sensitive to operational friction during rapid scaling phases. Investors should remain cautious, as any deceleration in unit-level productivity could lead to a significant re-rating of the company's premium valuation relative to its restaurant peers.
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.