CAVA stock price after CAVA earnings: CAVA stock skyrockets 22% – here’s what’s driving the bullish sentiment

CAVA stock price today: CAVA Group stock jumped 22% on Wednesday after reporting strong revenue growth and laying out plans for continued expansion.

CAVA Stock Surges After Q4 FY25 Results

In the fourth quarter of FY25, the Mediterranean fast-casual chain posted a 21.2% increase in revenue, reaching $272.8 million compared with $225.1 million a year earlier, as per a report.

CAVA’s New Restaurant Openings Drive Double-Digit Sales Increase

The company linked that growth to 87 net new restaurant openings during or after Q4 FY24, along with a modest 0.5% rise in same-restaurant sales, as per a Global Data report.
For the full fiscal year, revenue rose 22.5% to $1.16 billion, reflecting steady progress across the business.

Restaurant expansion remained a key driver. CAVA opened 72 net new locations in FY25, bringing its total footprint to 439 restaurants, a 19.6% year-on-year increase. Looking ahead, the company expects to open between 74 and 76 new restaurants in FY26 and anticipates same-restaurant sales growth of 3% to 5%, as per the Global Data report.

Also read: Anthropic’s AI coding surge reshapes hiring: Why senior talent is in demand now as Claude takes over junior engineers’ role

CAVA’s Adjusted Net Income Declines in Q4 Amid Higher Depreciation Costs

Profit results were more mixed. Adjusted net income for the fourth quarter fell to $4.9 million from $6.5 million in the same period in 2024, largely due to higher depreciation and amortisation, though this was partly offset by lower equity-based compensation expense. Adjusted EBITDA for the quarter edged up slightly to $25.8 million from $25.1 million a year earlier.For the full year, net income totaled $63.7 million compared with $130.3 million in FY24. At the same time, full-year adjusted EBITDA increased to $152.8 million from $126.2 million, and same-restaurant sales rose 4%, as per the Global Data report.

Also read: Why is Bitcoin facing its worst losing streak since 2018? Here are 5 key factors driving BTC USD price down

CEO Brett Schulman Calls 2025 a “Milestone Year” for CAVA

Co-founder and CEO Brett Schulman described 2025 as a milestone year, pointing to the company’s focus on scaling with a long-term, intentional approach. He said the brand’s momentum and market share gains show how strongly it is resonating with consumers, as per the Global Data report.