Cava trounces fast-casual peers with 22% revenue growth, surpassing $1 billion in sales for the first time
Good morning. Cava isn’t just expanding geographically—it’s evolving its menu, as the company forges ahead into 2026 after posting record revenue in 2025.
The Mediterranean fast-casual chain recently launched its most extensive menu update yet, CFO Tricia Tolivar said. White sweet potatoes returned alongside new items such as power greens, sumac slaw, and pita chips with sumac sour cream and onion. In April, Cava will introduce its first salmon entrée, finished with a pomegranate glaze.
Cava’s growth continued in the fourth quarter ended Dec. 28, with revenue rising 21.2% year over year—above analyst expectations of 18%. For the full year, revenue climbed 22.5% to $1.169 billion, surpassing $1 billion for the first time, the company reported on Tuesday.
By comparison, Chipotle Mexican Grill reported 4.9% fourth-quarter revenue growth, while Wingstop posted 8.6%.
Tolivar attributed Cava’s gains to long-term discipline. The company maintained positive same-restaurant sales and traffic in 2025 without heavy promotions, focusing instead on “everyday value” to build loyalty while protecting margins.
Tariffs were a concern across the industry, but Cava absorbed cost pressures without compromising quality or significantly raising prices, Tolivar said. Its primary price increase in 2025 was about 1.7% early in the year. Tolivar said the company relies on a diversified, flexible supply chain with redundant sourcing to manage ongoing uncertainty.
Cava opened 72 net new restaurants in 2025, bringing its total to 439 locations—a nearly 20% increase year over year—and driving $3 million in average unit volumes, she said. The company plans roughly 17% unit growth in 2026, or up to 76 additional locations, in addition to same-store sales growth of 3% to 5%.
Leadership development remains central to that expansion. Cava is investing in its Flavor Your Future platform to train assistant general managers and strengthen operations. “Growth only happens at the pace of our talent,” Tolivar said.
Cava reported net income of $4.9 million for the quarter. While fourth-quarter same-restaurant sales rose 0.5%, Tolivar noted the company faced tough comparisons following a 20% comp gain in late 2024. On a two-year stacked basis, sales increased more than 21%.
A key part of Tolivar’s strategy will be working closely with incoming chief operations officer Doug Thompson, who joins the company in March.
“I couldn’t be more proud of what our teams delivered in 2025,” Tolivar said. “With Doug joining and the focus we’re placing on developing great leaders, I’m excited about what’s ahead for Cava. We’re building for the long term—continuing to bring more people to our table.”
At Tolivar’s table, a favorite remains Cava’s “creamy, delicious white sweet potatoes,” she said. “My daughter and I absolutely love them.” Her daughter even has a favorite piece of Cava merch—a white sweet potato T-shirt that she proudly wears, Tolivar said.
Sheryl Estrada
sheryl.estrada@fortune.com
This story was originally featured on Fortune.com