Cava has had a run of mostly double-digit same-store sales increases since it went public in 2023, and no amount of uncertainty could stop that trend in the first quarter.
Not the talk of tariffs and consumer fears of rising costs. Not bad weather or wildfires. Not even DOGE-related federal worker layoffs in the brand’s hometown of Washington, D.C.
Cava’s sales remained consistently strong across all geographies, income levels and dayparts, the company said Thursday.
As Cava CEO Brett Schulman put it: “Our consumer remains resilient.”
The fast-casual chain said same-store sales grew 10.8% during the first quarter, including a 7.5% increase in traffic and a 3.3% benefit from menu price and mix.
That laps a relatively easy comparison with the first quarter last year, when same-store sales grew 2.3%. (That was the only single digit increase reported so far as a public company.)
Comparisons get more challenging later this year, particularly in the second half. Last year, Cava’s same store sales increased or exceeded 21% in the second and third quarters.
But Cava expects same-store sales growth of 6% to 8% this year. And the company expects to report a same-store sales increase on a three-year basis in the high 30% range for the rest of the year, implying confidence in the brand’s ability to continue bucking the trend.
The first quarter proved challenging for most brands across segments; even favored fast-casual peers like Chipotle and Wingstop saw consumers pull back in light of inflation and economic uncertainty.
Fundamentally, Schulman believes Cava is winning people over with value.
The chain has kept menu pricing to a minimum. Prices went up 1.7% in January, but they do not plan any more increases this year.
Schulman said increases have largely been 800 basis points lower than the Consumer Price Index in the last few years, while other brands have outpaced the index significantly.
“And as consumers face increasing uncertainty around them, increasing cost pressures, we’re that port in the uncertainty and inflationary storm,” he said in an interview.
Cava’s new loyalty program, launched last year, has about 8 million members, with more than 50,000 registrations per week, Schulman said. Sales tied to loyalty members grew by 340 basis points as a percentage of total revenue.
March 29 was declared National Pita Day, as the birthday of new mascot Peter Chip, and free pita chips were given out to all rewards members—a promotion that drew record traffic to Cava’s app and engagement. More than 130% more rewards were redeemed than had been anticipated, he said.
Later this year, Cava plans to further upgrade the loyalty program with tiers that will allow more frequent guests to earn rewards faster.
A new protein is also coming to the menu this year, but Schulman did not reveal which it might be. The chain is testing chicken shawarma in Dallas and Florida, and Schulman said that test is going well.
“It is a staple item in the Levant region, which is really core to our Mediterranean concept essence,” he said. “And it is a different cut of chicken, so it’s spit roasted chicken breast that is complementary to our existing chicken cuts on the line. It’s a different textural experience, different look and feel.”
It’s also an easy protein to produce, he said “We always want to be mindful when we’re adding innovation to make sure we are not adding too much operational complexity."
The chain’s average unit volume also grew to $2.9 million during the first quarter, from $2.6 million a year ago.
Restaurant-level margins declined slightly to 25.1% compared with 25.2% a year ago, largely because of the higher cost of the grilled steak rolled out last year, along with wage investments. But those costs were offset by higher sales.
The chain added 15 restaurants during the quarter, for a total of 382, which is 18% growth. Cava upgraded their new unit expectations for the year, projecting 64 to 68 restaurants will open, up from earlier projections of 62 to 66.
Revenues were up more than 28% to $328.5 million, and Schulman said the chain has passed the $1 billion mark in sales over the past 12 months.
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