Mediterranean fast-casual restaurant chain CAVA Group, Inc. (NYSE:CAVA) stock traded higher in premarket action Wednesday after the company reported first-quarter results that topped Wall Street expectations and raised its full-year outlook.

First-Quarter Results Beat Estimates

The company reported first-quarter revenue of $438.27 million, surpassing the analyst consensus estimate of $411.25 million. Adjusted earnings came in at 20 cents per share, above analysts' expectations of 17 cents per share.

Food, beverage and packaging costs improved 20 basis points year over year to 29.1% of revenue, helped by a favorable menu mix.

However, management said the nationwide rollout of salmon is expected to pressure margins by about 100 basis points through the remainder of fiscal 2026.

Adjusted EBITDA increased 37.6% year over year to $61.7 million, driven by strong comparable sales growth and contributions from new restaurant openings.

The company ended the quarter with no debt and $403 million in cash and investments.

The company said the results reflect the "structural strength" of its business and its leadership position in the Mediterranean restaurant category, which it said CAVA helped pioneer and continues to shape.

Management added that while some competitors have leaned on discounting and promotions amid uneven consumer spending trends, CAVA has stayed focused on its long-term strategy, offering customers flexibility across both everyday and premium menu options while expanding access to Mediterranean cuisine nationwide.

Traffic Growth And Store Expansion Remain Strong

Same-restaurant sales increased 9.7% year over year, primarily driven by 6.8% traffic growth during the quarter.

CAVA opened 20 net new restaurants during the quarter and ended the period with 459 locations across 29 states and Washington, D.C., representing a 20.2% increase from a year ago.

System-wide average unit volumes rose to about $3 million, while new restaurant productivity exceeded 100%.

The company implemented a 1.4% menu price increase in January 2026 while keeping prices unchanged on core menu items, including bowls and pita products, to maintain its value positioning.

Salmon Launch And Technology Investments In Focus

CAVA introduced its first seafood offering, Pomegranate Glazed Salmon, nationwide during the quarter. Management said early customer response has been positive and expects the launch to support menu diversification and customer engagement.

The company also highlighted several technology initiatives, including CAVA Core, a companywide data platform, and CAVA Current, a real-time operations and commerce system aimed at improving execution, personalization, labor management and AI-driven decision-making.

Management said the internally developed platforms are intended to create a real-time, AI-enabled operating system for the business over the next decade.

CEO Brett Schulman said restaurant performance remains strong across all income-based market cohorts, with locations in lower-income areas continuing to outperform despite the broader "K-shaped" economy, where consumer spending trends remain uneven across income groups.

Full-Year Outlook Raised

CAVA now expects fiscal 2026 same-restaurant sales growth of 4.5% to 6.5%, compared with prior guidance of 3% to 5%.

The company also raised its adjusted EBITDA forecast to a range of $181 million to $191 million, up from previous guidance of $176 million to $184 million.

CAVA expects to open between 75 and 77 new restaurants this year.

CAVA Price Action: Cava Group shares were up 7.49% at $83.97 during premarket trading on Wednesday, according to Benzinga Pro data.

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