Mediterranean restaurant chain Cava has set a target of having more than 1,000 locations by 2032 despite the bumps the fast-casual dining sector is experiencing.
The Washington, D.C.-based company on Tuesday reported that its fiscal fourth-quarter revenue rose 21.2% to $272.8 million for the period ended Dec. 28. But same-restaurant sales were virtually flat, rising just 0.5%. For the full year, revenue was up 22.5% to $1.2 billion and same-restaurant sales increased 4%.
Cava, which serves made-to-order Mediterranean bowls, aims to double its restaurant count. But it's being buffeted and faces the same macroeconomic environment dynamics that are affecting other fast-casual chains, such as Chipotle Mexican Grill and Wingstop. They are losing some customers who are opting to stretch their dollars by going to fast-food restaurants offering meals for the price conscious.
Nonetheless, Cava's revenue is being boosted as it expands its brick-and-mortar footprint. It rolled out 24 new restaurants in the fourth quarter and 74 for the full year, bringing its count to 439, a roughly 20% increase year over year, Cava co-founder and CEO Brett Schulman said on the earnings call. This year, it plans to open 74 to 76 eateries, he said, passing the 500-unit point.
Last year was a strong one for expansion, with the company surpassing $1 billion in revenue and with its "strongest new restaurant-opening class to date," according to Schulman.
"And we're excited to continue that momentum in 2026 with upcoming new market entries across the Midwest, including Cincinnati, St. Louis, Columbus and Minneapolis," he said. "We remain on track toward our next milestone of at least 1,000 restaurants by 2032."
Schulman also described last year as marking a transition point for Cava, "shifting from a newly public company to a large-scale, sustainable growth enterprise as the model we've been building began to grow more broadly, with strong new restaurant performance translating into meaningful market share gains."
Next month, Doug Thompson will join Cava as its new chief operations officer. Part of his role will be to develop the chain's next generation of managers, according to Schulman. To that end, Cava has created a new position, assistant general manager, to help "build a deeper bench of role-ready leaders as we continue to scale," he said.
That will be crucial as Cava continues to grow at compound annual-unit rate, "staring down the barrel of 100-plus restaurants a year," Schulman said.
In recent years, Cava has increased its prices by less than half of its industry peers "while underpricing the CPI [consumer price index] by over 10%," according to Schulman.
"Our value proposition is resonating with today's increasingly discerning consumer," he said. "As guests become more intentional with their spend, they are choosing brands like Cava that deliver real differentiation through bold flavors, healthful food and hospitality that creates meaningful human connection."
Newport, California-based Chipotle saw its revenue increase 4.9% to $3 billion in the fourth quarter, while comparable restaurant sales decreased 2.5%. For the full year, it opened 334 company-owned restaurants, with 257 locations including a Chipotlane, and 11 international partner-operated restaurants.