Cava Group New Stores Yield $3M AUV and 24% Margins Despite 53% Stock Drop
Cava Group’s shares have declined roughly 53% since their February 2025 peak, with mature restaurants posting just 1.9% same-store sales growth in Q3 2025 vs 18.1% a year earlier. However, its newly opened 2025 restaurants are generating annualized AUVs above $3 million and maintaining restaurant-level margins exceeding 24%.
1. CAVA Appoints Doug Thompson as Chief Operations Officer
Effective March 2, CAVA has named industry veteran Doug Thompson as Chief Operations Officer. Thompson brings more than two decades of leadership experience from Texas Roadhouse, where as COO and VP of Operations he oversaw the opening of hundreds of locations, guided operations through 40 consecutive quarters of positive comparable sales, and co-developed two new restaurant concepts. His appointment underscores CAVA’s commitment to operational excellence as it scales its fast-casual Mediterranean model nationwide.
2. Proven Track Record in Scaling Brands and Developing Talent
Thompson is recognized for building high-performing teams and a transformational leadership pipeline. As CEO of Tumble 22 Texas Chicken Joint, he doubled the store count and established the infrastructure to support rapid growth. Earlier roles at Carrabba’s Italian Grill and Outback Steakhouse further honed his skills in large-scale operations and talent cultivation. CAVA expects his people-first approach—coaching managers from grill cook up—to strengthen team retention and drive consistent guest satisfaction across markets.
3. Strong Unit Economics and Operational Performance
Despite a slowdown in mature-store traffic, CAVA’s newest units are delivering annualized average unit volumes north of $3 million, placing them alongside top industry performers. In third-quarter 2025, the brand maintained restaurant-level profit margins above 24%, demonstrating resilience against inflationary pressures. While same-restaurant sales growth cooled to 1.9% in Q3 2025 (down from 18.1% a year earlier), these metrics highlight the underlying profitability of CAVA’s expansion strategy and pricing power within the fast-casual segment.
4. Ambitious Growth Roadmap and Investor Implications
With 415 locations today and a funded plan to reach 1,000 restaurants by 2032, CAVA is positioned for significant scale in the growing limited-service and health-focused food markets. The company’s ability to maintain margins while tripling its footprint could unlock substantial upside for long-term investors. Following a roughly 40% share-price decline over the past 12 months, CAVA’s current valuation offers a potential entry point for those focused on disciplined expansion, robust unit economics, and a leadership team committed to people-driven hospitality.