Shares of CAVA Group jumped 9% in premarket trading on Wednesday after the Mediterranean fast-casual chain posted stronger-than-expected first-quarter 2026 results and raised its full-year outlook, reinforcing investor confidence in the company’s growth trajectory.
The company reported revenue of about $434 million to $438 million for the quarter, representing a 32.2% increase from the same period a year earlier and comfortably ahead of analyst expectations.
Comparable restaurant sales climbed 9.7%, helped by a 6.8% increase in guest traffic and an additional 2.9% contribution from menu pricing and product mix.
The results extended a sharp recovery in the stock, which has gained 29% so far this year after concerns in 2025 that the chain’s rapid expansion could begin to slow.
Company raises full-year outlook
Following the stronger-than-expected quarter, Cava raised its full-year 2026 guidance.
The company now expects to open between 75 and 77 net new restaurants during the year and forecast same-restaurant sales growth of 4.5% to 6.5%, up from its earlier outlook of 3% to 5%.
Adjusted EBITDA is now projected between $181 million and $191 million.
Chief Executive Brett Schulman said the company’s combination of quality, affordability, and convenience continued to resonate with customers despite broader economic uncertainty.
“While they may be more discerning with where they’re spending their dollars, our numbers reflect that they’re choosing to spend their dollars at Cava,” Schulman said, adding that customers were not necessarily seeking the lowest-priced dining option.
Schulman also highlighted the company’s continued momentum despite difficult year-over-year comparisons.
“First quarter same restaurant sales grew 9.7%, including traffic growth of 6.8%,” he said.
“These results, which include the lap of strong prior year comparisons, speak to the structural strength of our business and our position as the dominant leader in Mediterranean.”
Analysts turn more bullish on growth outlook
The earnings report triggered a wave of analyst upgrades and higher price targets as brokerages pointed to stronger traffic trends and improving confidence in the company’s expansion strategy.
Barclays raised its price target on Cava to $74 from $70 while maintaining an Equal Weight rating.
According to TheFly, the firm described the company’s first-quarter performance on comparable sales, margins and earnings as “impressive” given the broader economic backdrop.
Baird also increased its target price to $98 from $88 and reiterated an Outperform rating, citing stronger sales momentum and higher earnings estimates following the quarterly update.
Piper Sandler raised its target to $92 from $85 and maintained an Overweight rating, noting that same-store sales growth of 9.7% significantly exceeded consensus estimates of 6.1%.
The brokerage also pointed out that second-quarter sales trends were tracking roughly in line with the first quarter, far ahead of market expectations.
Meanwhile, Stifel lifted its target price to $105 from $90 and reiterated a Buy rating, while Jefferies increased its target to $95 from $85.
Cava opened 20 net new restaurants during the quarter, including entries into Midwest markets such as Columbus, Cincinnati, and St. Louis, as investors continue to watch whether the company can sustain its rapid expansion while maintaining strong traffic growth.
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