Cava reported strong fiscal first-quarter results, surpassing expectations despite a challenging environment for the broader restaurant industry. The Mediterranean fast-casual chain saw same-store sales grow 10.8% in the quarter ending April 20, driven by a 7.5% increase in customer traffic, outperforming analyst projections of 10.3% growth. CFO Tricia Tolivar highlighted that customers are trading up from fast food and trading down from casual dining, favoring Cava’s bowls, pitas, and premium add-ons like housemade juices and pita chips. This shift contributed to higher average spend per guest and widespread positive traffic across regions, income levels, and dining formats.

In contrast, many competitors have reported weaker results. Chipotle’s transactions dropped 2.3% in Q1 amid economic uncertainty, Sweetgreen experienced its first same-store sales decline since going public, and McDonald’s U.S. sales fell 3.6%, with its CEO noting reduced spending among low- and middle-income customers.

Despite the strong quarter, Cava maintained its same-store sales forecast of 6% to 8% growth for the full fiscal year, anticipating slower growth in the latter half of 2025. The company’s shares fell 5% in after-hours trading, reflecting investor concerns over its cautious outlook and external economic pressures such as tariffs.

Financially, Cava posted earnings per share of 22 cents, beating the 14-cent consensus, and revenue of $332 million, slightly above estimates. Net income rose to $25.7 million from $14 million the prior year, aided by a $10.7 million tax benefit related to stock-based compensation. Notably, Cava’s trailing 12-month revenue surpassed $1 billion—a significant milestone.

The company also raised its fiscal year guidance, projecting adjusted EBITDA between $152 million and $159 million and planning to open 64 to 68 new locations, up from previous estimates.