CAVA Group, Inc. has reported impressive financial results for the fiscal third quarter of 2025, highlighted by a robust 20% revenue increase to $289.8 million, compared to $241.5 million a year earlier. This growth can be primarily attributed to the successful opening of 74 new CAVA restaurants, signaling strong demand and performance that exceeded expectations. Furthermore, same-store sales saw a modest increase of 1.9%, driven by a strategic adjustment in menu pricing and product offerings, while guest traffic remained stable.
The CAVA Restaurant-Level Profit reached $71.2 million, marking a significant growth of 15.1% over the prior-year quarter, resulting in a Restaurant-Level Profit Margin of 24.6%. Additionally, CAVA’s Average Unit Volume (AUV) increased to $2.9 million, up from $2.8 million in the same quarter last year, reflecting enhanced sales productivity in a competitive environment.
Brett Schulman, CAVA’s Co-Founder and CEO, expressed satisfaction with the results, stating, “Q3 of 2025 delivered another quarter of market share growth, while we continued to reinforce our value proposition, rooted in the quality, relevance, convenience, and experience that we are known for.” He noted that the 1.9% increase in same-store sales represented a return to positive growth despite challenging comparisons from the previous year.
Financial metrics also showed promising trends, with adjusted EBITDA climbing to $40 million, a rise of 19.6% year-over-year. However, the Restaurant-Level Profit Margin witnessed a decrease from 25.6% in the same quarter of the previous year, attributed to increased third-party delivery costs, rising ingredient prices, and elevated wage expenses. CAVA’s general and administrative expenses also improved, falling to 10.8% of revenue from 12.2% in Q3 of 2024, demonstrating the company’s effective cost management strategies.
CAVA Group has updated its fiscal year 2025 outlook, projecting 68 to 70 new restaurant openings, with same-store sales growth anticipated between 3.0% and 4.0%. The company’s commitment to expansion and innovation is evident as they navigate through economic uncertainties while adapting their business model to meet changing consumer preferences for healthy and quality food options.
With an expanding footprint and a focus on delivering exceptional dining experiences, CAVA Group continues to position itself favorably in the fast-casual restaurant market. The upcoming earnings conference call, scheduled for November 4, 2025, will provide further insights into the company’s business strategies and future growth initiatives.