CAVA Group announced its fiscal third‑quarter 2025 results, reporting earnings of 12 cents per share and revenue of $292.23 million—both figures falling short of consensus estimates of 13 cents and $292.8 million, respectively. Same‑store sales grew 1.9% and the company opened 17 net new restaurants during the quarter, keeping its expansion pace on track for the year.
The quarter’s restaurant‑level profit margin declined to 24.6% from 25.6% a year earlier, a drop attributed to higher food, beverage and packaging costs, increased labor expenses, and a higher mix of third‑party delivery services. The margin compression signals rising input costs and pricing pressure in a competitive fast‑casual market.
CAVA’s full‑year outlook was revised downward: same‑store sales growth is now projected at 3%–4% instead of the previously forecast 4%–6%, and restaurant‑level profit margin is now expected to be 24.4%–24.8% rather than 24.8%–25.2%. The guidance cut reflects a slowdown in demand, particularly among younger consumers, and ongoing macroeconomic headwinds.
These developments indicate that while CAVA continues to add new locations, its profitability is under pressure from cost increases and a modest decline in traffic. The company’s ability to maintain margin levels and sustain growth will be closely watched by investors as it navigates a challenging operating environment.
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