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# CAVA Lifts Same-Store Sales Outlook, But Cyclospora Concerns Cost It 1.5 Points And Margin Slips
- URL: https://www.bullished.co/cava-lifts-same-store-sales-outlook-but-cyclospora-concerns-cost-it-1-5-points-and-margin-a22503e6/
- Published: 2026-11-04T21:23:23.000Z
- Updated: 2026-11-04T21:23:23.000Z
- Description: The Mediterranean chain trimmed the top of its margin forecast to 24.0% and raised pre-opening costs to $28.5 million to $29.5 million.
- Author: Matteo Parrino
- Tags: SEC Filings, CAVA, Industry: Consumer Discretionary

CAVA, the fast-casual Mediterranean chain, [grew third-quarter revenue 22.1%](https://www.sec.gov/Archives/edgar/data/0001639438/000162828026070159/earningsrelease2026q3.htm?ref=bullished.co) to $353.7 million, but net income fell to $13.2 million from $14.7 million, the company said Wednesday. It raised its full-year same-restaurant sales forecast while shaving the top of its margin range.

## Cyclospora takes a bite out of sales

Same-restaurant sales [rose 3.1%](https://www.businesswire.com/news/home/20261104206171/en/CAVA-Group-Reports-Third-Quarter-2026-Results?ref=bullished.co) in the quarter, which ended October 4, 2026\. The company said Cyclospora and broader worries about eating fresh produce cut that figure by about 150 basis points, or about 1.5 percentage points. Menu price and product mix added 3.0%, with guest traffic slightly positive.

The prior two quarters were far stronger: same-restaurant sales rose 9.0% in the second quarter and 9.7% in the first.

"In the third quarter, despite broader industry pressures, we continued to gain market share, expand our footprint, and see strong performance from our new restaurants," said Brett Schulman, Co-Founder and CEO.

## Margins give back 120 basis points

Restaurant-level profit [margin was 23.4%](https://www.businesswire.com/news/home/20261104206171/en/CAVA-Group-Reports-Third-Quarter-2026-Results?ref=bullished.co), down 120 basis points from a year earlier, on profit of $82.7 million, up 16.2%. The company pointed to added labor investment, more third-party delivery and higher repairs and maintenance spending, partly offset by sales leverage. Third-party delivery dilutes the margin rate but adds margin dollars because guests pay a higher price, it said.

Net income fell mainly on higher depreciation and amortization and higher equity-based compensation. Adjusted EBITDA, the company's own profit measure, grew 5.7% to $42.3 million, or 11.9% of revenue. For the first 40 weeks of the year, operating cash flow was $181.6 million and free cash flow was $37.1 million.

## A raised sales view, a narrower profit view

CAVA, which operated 439 restaurants at the end of fiscal 2025 and runs customizable bowl and pita restaurants, now has 500 after 24 net openings, up 20.5% from a year earlier. Schulman said the 500th opened ahead of schedule.

The updated full-year outlook, against the August 11 version:

- Same-restaurant sales: 6.0% to 7.0%, from 4.5% to 6.5%.
- Net new restaurants: 76 to 78, from 75 to 77.
- Restaurant-level margin: 23.7% to 24.0%, from 23.7% to 24.3%.
- Pre-opening costs: $28.5 million to $29.5 million, from $22.0 million to $22.5 million.
- Adjusted EBITDA: $184.0 million to $189.0 million, from $181.0 million to $191.0 million.

CAVA was scheduled to discuss the quarter and give a business update on a call at 5:00 p.m. ET Wednesday.

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### Sources

- [8-K Filing — CAVA GROUP, INC. (CAVA)](https://www.sec.gov/Archives/edgar/data/0001639438/000162828026070159/cava-20261104.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit earningsrelease2026q3.htm — CAVA GROUP, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001639438/000162828026070159/earningsrelease2026q3.htm?ref=bullished.co) — SEC EDGAR
- [CAVA Group Reports Third Quarter 2026 Results](https://www.businesswire.com/news/home/20261104206171/en/CAVA-Group-Reports-Third-Quarter-2026-Results?ref=bullished.co) — businesswire.com