"CAVA reported Q3 2025 earnings after the close on Tuesday, delivering results that largely matched expectations but fell short on profitability. The stock closed at $49.12, down sharply from its 52-week high of $172.43. Revenue came in at $292.24M versus the $291.95M estimate, while EPS missed at $0.12 against a $0.13 consensus. The miss marked a departure from CAVA's recent track record of beating estimates in five of the last six quarters."
"What caught my attention, though, was the margin squeeze. Restaurant-level profit margin fell to 24.6% from 25.6% a year ago. Net income declined 17.92% to $14.75M despite revenue growth, a troubling divergence. Management attributed the pressure to higher food, beverage, and packaging costs alongside increased labor expenses. Digital revenue held steady at 37.6% of the mix, a key strength in an increasingly omnichannel environment."
CAVA reported Q3 2025 revenue of $292.24M, up 19.86% year over year, and same-restaurant sales increased 1.9%. The company opened 17 net new locations in the quarter, remaining on track for 68–70 new restaurants for the year. EPS missed at $0.12 versus a $0.13 consensus, and net income declined 17.92% to $14.75M. Restaurant-level profit margin fell to 24.6% from 25.6% a year earlier as higher food, beverage, packaging, and labor costs compressed margins. Digital revenue comprised 37.6% of sales. Operating expenses rose faster than revenue, creating ongoing pressure on profitability.
Read at 24/7 Wall St.
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