CAVA GROUP INC (NYSE:CAVA) Reports Mixed Q2 2025 Results with Revenue Miss and EPS Beat

CAVA GROUP INC (NYSE:CAVA) reported its second-quarter fiscal 2025 results, delivering mixed performance relative to analyst expectations. The Mediterranean fast-casual chain posted revenue of $280.6 million, up 20.2% year-over-year but falling short of Wall Street’s $291.3 million estimate. Meanwhile, non-GAAP earnings per share (EPS) of $0.16 exceeded consensus estimates of $0.1376 by 18.7%.

Key Financial Highlights vs. Estimates

• Revenue: $280.6M (actual) vs. $291.3M (estimated) – a 3.7% miss
• EPS: $0.16 (actual) vs. $0.1376 (estimated) – an 18.7% beat
• Same-restaurant sales growth: 2.1%, reflecting modest traffic stability but weaker-than-expected pricing/mix impact
• Digital revenue mix: 37.3%, indicating continued strength in off-premise sales

Market Reaction

Following the earnings release, CAVA’s stock plummeted 21.4% in after-hours trading, reflecting investor disappointment over the revenue miss and a lowered full-year same-store sales growth outlook (now 4%-6%, down from 6%-8%). The market’s reaction suggests concerns about slowing growth momentum despite profitability improvements.

Operational and Strategic Updates

• Unit growth: Opened 16 net new restaurants, bringing the total to 398 (up 16.7% YoY).
• Average Unit Volume (AUV): $2.9M, up from $2.7M in the prior-year quarter.
• Restaurant-level profit margin: 26.3%, slightly down from 26.5% due to higher input costs and wage investments.
• Adjusted EBITDA: $42.1M (15% of revenue), up 22.6% YoY, driven by new store performance and operational efficiencies.

Outlook vs. Analyst Expectations

CAVA revised its full-year guidance, maintaining its Adjusted EBITDA forecast of $152M-$159M but reducing same-store sales expectations. Analysts had projected full-year revenue of $1.215 billion, but the company’s tempered growth outlook may signal caution amid macroeconomic pressures.

Conclusion

While CAVA’s profitability metrics outperformed expectations, the revenue shortfall and softer sales guidance have weighed heavily on investor sentiment. The stock’s sharp decline reflects concerns over whether the company can sustain its rapid expansion without sacrificing margins.

For more detailed earnings estimates and historical performance, visit CAVA’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making decisions.