Cava Q3 2026: A Double Miss Driven by a Cyclospora Scare

Cava posted a rare quarter in which it fell short on both revenue and earnings. Revenue of $356.4 million came in missing expectations, and GAAP earnings of $0.11 per share also fell short of consensus. The chain had beaten or matched expectations in most recent quarters, so the double shortfall stands out.

The main culprit was a sharp slowdown in same-restaurant sales, which decelerated to 3.1% from 9.0% in the prior quarter. Management attributed roughly 150 basis points of that pressure to a Cyclospora outbreak and the broader consumer hesitancy around fresh produce that followed it. The remaining same-store growth of about 3% came almost entirely from menu price and product mix, with guest traffic described as only slightly positive.

Margins also felt the squeeze. Restaurant-level profit margin contracted 120 basis points to 23.4%, with management pointing to labor investments, a heavier third-party delivery mix, and higher repair and maintenance spending. Operating income fell 35.5% year over year to $15.0 million, and net income slipped 10.5% to $13.2 million, reflecting additional drag from higher depreciation and equity-based compensation.

Despite the softer results, management signaled confidence that the slowdown is temporary. Full-year same-restaurant sales guidance was raised to 6.0% to 7.0% from a prior range of 4.5% to 6.5%, and the net new restaurant opening target was nudged up to 76 to 78 from 75 to 77. The chain also reached a milestone during the quarter, opening its 500th location ahead of schedule, with total restaurant count now up about 20.5% year over year.

Revenue for the Cava Restaurants segment specifically came in at $353.7 million, up 22.1% from the same period a year ago, underscoring that the underlying growth engine is still running even as same-store comparisons cool. Average unit volumes rose to $3.1 million from $2.9 million in the year-ago quarter, and digital revenue accounted for 38.5% of the mix. The question heading into Q4 is whether the Cyclospora headwind fades as quickly as management expects, or whether the consumer caution around fresh ingredients lingers into the holiday quarter.