CAVA Stock: Wall Street Raises Targets After Blowout Q1 Results

TLDR

• CAVA stock surged 6.4% in pre-market trading after Q1 2026 revenue hit $434.4 million, up 32.2% year-over-year.
• Same-restaurant sales rose 9.7%, driven by 6.8% guest traffic growth, well above the 6.1% analyst consensus.
• The company raised full-year 2026 guidance, now expecting 75–77 net new restaurant openings and same-store sales growth of 4.5%–6.5%.
• Multiple analysts lifted price targets, including Stifel to $105 and Jefferies to $95, both maintaining Buy ratings.
• CAVA carries zero debt and holds $403 million in cash, and Q2 same-store sales trends are tracking in line with Q1.

CAVA Group posted first-quarter 2026 results that came in well ahead of what Wall Street was expecting, sending the stock up 6.4% in pre-market trade on Wednesday.

CAVA Group, Inc., CAVA

Revenue for the quarter came in at $434.4 million, a 32.2% jump from the same period a year ago. That beat analyst forecasts by a clear margin.

Same-restaurant sales rose 9.7% in the quarter. Analysts had been looking for around 6.1%, so this was a meaningful beat on one of the most closely watched metrics in the restaurant space.

The growth was driven largely by more customers walking through the door. Guest traffic rose 6.8%, with the remaining 2.9% coming from menu price and mix changes.

Restaurant-level profit came in at $108.9 million, or 25.1% of revenue. Adjusted EBITDA for the quarter was $61.7 million. Net income was $23.6 million, with diluted EPS of $0.20.

Guidance Gets a Boost

Management raised its full-year 2026 outlook across the board. CAVA now expects 75 to 77 net new restaurant openings, up from prior guidance. Same-restaurant sales growth guidance was lifted to a range of 4.5%–6.5%, compared to the previous 3.0%–5.0%.

Adjusted EBITDA guidance was raised to between $181 million and $191 million. Restaurant-level profit margin is expected to land between 23.7% and 24.3%.

Early second-quarter trends are also encouraging. CFO Tricia Tolivar said Q2 same-store sales are tracking in line with Q1, which is well ahead of the prior consensus estimate of around 4.9%.

There are some margin headwinds to flag. The launch of Pomegranate Glazed Salmon — CAVA’s first seafood item — is expected to add about 100 basis points of margin pressure starting in Q2. Energy costs are also expected to weigh 20 to 40 basis points.

Analysts Raise Targets

The analyst community moved quickly after the results. Piper Sandler lifted its price target to $92 from $85, keeping an Overweight rating. Stifel raised its target to $105 from $90 with a Buy. Jefferies also moved its target to $95 from $85, maintaining a Buy rating as well.

CEO Brett Schulman pointed to the results as evidence of the business’s structural strength, noting that the Q1 numbers include a lap of strong prior-year comparisons.

CAVA’s balance sheet remains clean. The company has zero debt outstanding and $403 million in cash and investments. Cash flow from operations in Q1 was $64.1 million, with free cash flow of $15.5 million.

The salmon launch is live across all restaurants nationwide and has shown what management described as “promising early results.” The company also reported that its CavaCore technology platform and CAVA Current order-processing system are both now live.

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