CAVA Analysis: Mediterranean Fast-Casual Pioneer Crosses $1 Billion Revenue as Same-Store Sales Surprise Wall Street
CAVA Group (NYSE: CAVA) just delivered a milestone quarter. The Mediterranean fast-casual restaurant chain reported fiscal fourth-quarter 2025 results on February 24, beating Wall Street estimates with surprise same-store sales growth driven by menu price increases. Full-year revenue exceeded $1 billion for the first time in the company's history — a landmark that cements CAVA's position as the fastest-growing restaurant IPO of the past decade. Trading at $67.80, CAVA sits 38% below its 52-week high of $108.98 but 56% above its 52-week low of $43.41. The stock carries a market capitalization of $7.86 billion, reflecting the market's expectation that this company still has a long runway of unit expansion and revenue growth ahead. With a P/E ratio of 58.45 on trailing earnings of $1.16 per share, the valuation question is front and center: is CAVA a premium growth story worth paying up for, or has the market already priced in years of flawless execution? The answer depends on whether you believe the Mediterranean food category can sustain the kind of growth trajectory that Chipotle achieved in the 2010s. CAVA's management clearly believes it can, issuing upbeat guidance for fiscal 2026 and signaling that American consumers are trading up from value-driven dining to healthier, more premium options. The earnings surprise today adds fuel to that narrative — but the valuation demands scrutiny.