Cava raises annual forecasts as value-driven Mediterranean offerings draw diners
19/05/2026 21:20
May 19 (Reuters) - Restaurant chain Cava Group CAVA.N on Tuesday raised its forecasts for annual sales and core profit, betting on resilient demand for healthy and affordable Mediterranean cuisine. Shares of the company, which also beat quarterly sales and profit expectations, rose about 8% in extended trading. Even as high living costs weigh on U.S. consumers, Cava has enjoyed steady traffic, helped by value-focused diners. The chain is known for its customizable Mediterranean bowls, pitas and salads rich in protein and fiber. The company now expects an annual profit margin of 23.7% to 24.3%, compared with its previous forecast of 23.7% to 24.2%, as it plans to absorb higher costs tied to geopolitical tensions and oil prices in the second half rather than pass them on to customers. "There's a lot of challenges for our guests and a lot of inflationary pressures," CEO Brett Schulman told Reuters, adding that consumers are "discerning" about where they spend. Cava expects fiscal 2026 same-restaurant sales to grow between 4.5% and 6.5%, up from its prior forecast of a 3% to 5% rise. It forecast annual adjusted earnings before interest, tax, depreciation and amortization of $181 million to $191 million, compared with its earlier outlook of $176 million to $184 million. Cava's first-quarter same-restaurant sales rose 9.7%, beating analysts' estimate of a 5.95% increase. Adjusted EBITDA grew 37.6% to $61.7 million, above estimates of $57.7 million, according to data compiled by LSEG. (Reporting by Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber) ((Neil.JKanatt@thomsonreuters.com))