Cava beats quarterly expectations, reiterates forecasts amid outbreaks and economic worries

The restaurant chain known for its customizable offerings said a multistate cyclosporiasis outbreak in July, which made consumers wary of eating out, slowed sales.

"As we exited (the second quarter), the broader concerns around leafy greens and produce consumption did impact our sales, which we have seen begin to rebound," CEO Brett Schulman told Reuters, adding that Cava was not impacted by the recent salmonella outbreak.

Cava's upbeat results come even as major U.S. fast-food chains struggle to attract price-conscious diners, with discounts no longer enough to drive traffic. Cava also rolled out new menu items, including harissa barbecue pita chips and pomegranate-glazed salmon to draw in more diners.

The chain reiterated its fiscal 2026 forecast for same-restaurant sales growth of 4.5% to 6.5% and adjusted EBITDA of $181 million to $191 million.

Schulman said the unchanged forecasts reflect uncertainty over recent food safety issues, a "fluid" macroeconomic and geopolitical backdrop, and lingering inflation, including higher gas prices.

Cava Group beat Wall Street expectations for second-quarter sales and core profit, helped by demand for its affordable Mediterranean food, but kept annual forecasts unchanged amid risks from recent food safety outbreaks and macroeconomic uncertainty.

For the second quarter ended July 12, same-restaurant sales rose 9%, topping analysts' estimates of 7.63%, according to data compiled by LSEG. Guest traffic grew 5.3%.