Shares of CAVA Group, Inc. (NYSE: CAVA) skyrocketed on Wednesday, February 25, 2026, after the Mediterranean fast-casual leader delivered a dominant fourth-quarter earnings report that surpassed Wall Street expectations. The stock climbed as much as 21.8% in midday trading, reaching approximately $82.60, as investors cheered robust sales growth and an aggressive expansion roadmap for the coming year.
Q4 Financial Highlights and Revenue Growth
The Washington, D.C.-based chain reported a surprise surge in same-store sales growth, a key metric for the restaurant industry. For the fourth quarter of fiscal 2025, CAVA saw revenue growth of 21.2%, driven by strategic menu price adjustments and a steady increase in foot traffic. Total sales for the year officially topped the $1 billion milestone, cementing CAVA’s position as the category-defining brand in Mediterranean fast-casual dining.
Key financial figures from the report include:
- Net Income: $63.7 million for the full year 2025.
- Restaurant-Level Margin: A healthy 24.4%, showcasing strong operational efficiency despite inflationary pressures.
- Revenue: Q4 revenue reached $272.8 million, beating consensus estimates.
- Earnings Per Share (EPS): Reported at $1.20 for the fiscal year.
2026 Outlook: Aggressive Expansion and EBITDA Guidance
Looking ahead, CAVA management provided an optimistic forecast for fiscal year 2026. The company plans to open between 74 and 76 new restaurant locations, continuing its rapid footprint expansion across the United States. Furthermore, the company guided for an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of up to $184 million for 2026.
CEO Brett Schulman attributed the success to the brand’s “everyday value” proposition, which has resonated with consumers even as global tariffs and supply chain uncertainties impacted the broader market earlier in the week. While other restaurant stocks like Wingstop and Shake Shack faced volatility due to trade policy jitters, CAVA’s strong domestic performance provided a significant buffer for investors.
Analyst Reactions and Price Targets
Wall Street analysts were quick to adjust their models following the release. Truist Securities raised its price target on CAVA to $80, while other firms like TD Cowen and Telsey Advisory Group maintained even more bullish outlooks with targets of $90 and $88, respectively. Some high-end analyst estimates now reach as far as $125, reflecting high growth expectations for the brand.
Despite the rally, some analysts point to the company’s high Price-to-Earnings (P/E) ratio, currently hovering around 70.45x, as a sign that the stock is priced for perfection. However, with 10,300 employees and a rapidly growing loyal customer base, CAVA continues to defy technical bear market patterns, rebounding over 60% from its previous lows to lead the restaurant sector’s performance this Wednesday.