Good morning. A mix of Mediterranean flavors in healthy dishes—along with a side of pita chips—continues to lure diners to Cava, propelling the company to a major milestone.
The company announced Thursday that it has surpassed $1 billion in revenue over the most recent 12-month period. Cava's fast-casual business began in 2010 and started trading on the New York Stock Exchange in 2023. What’s behind the momentum?
The health-conscious meal options resonate with modern consumers, Cava CFO Tricia Tolivar told me. The chain offers curated bowls, pitas, and salads with a variety of protein options and toppings such as hummus, veggies, feta, and Greek vinaigrette.
But it’s not just the food—Cava’s pricing strategy has also played a crucial role, she said. While the Consumer Price Index rose about 23% from the end of 2019 through 2024, Cava’s prices increased only 15%, whereas fast-food prices on average jumped over 30%, Tolivar explained.
“There are no price increases planned for the rest of 2025 at this point,” she said. The company raised menu prices by only 1.7% in January. Tolivar added, “Cava has taken a disciplined approach to avoid passing cost increases onto our guests—absorbing those costs where we can and continuing to invest in the overall guest experience.”
Even as consumers face tough choices amid economic uncertainty and fluctuating tariff policies, Cava’s customer base remains strong. In the first quarter of 2025, same-restaurant sales grew 10.8% year over year, driven by a 7.5% increase in traffic. Tolivar noted that this period, through April 20, includes the Trump administration’s tariffs announcement on April 2. Cava's competitor Chipotle reported in Q1 that its same-store sales declined by 0.4% and transactions fell by 2.3% as consumers cut back on spending.
“What we're finding in our Q1 data is that our consumer is very resilient,” Tolivar said. Cava continues to see momentum in premium items like pita chips and house-made juices, as well as strong customer representation across all geographies and income levels, she said.
Cava has also expanded amid economic uncertainty, with 15 restaurant openings in Q1, bringing the total to 382-an 18.3% increase year over year. Restaurants are now in 26 states and Washington, D.C. “Nothing has cast any doubt on what we believe our long-term potential is, and so we feel very positively about those new restaurants,” Tolivar said. “In fact, we raised our guidance this quarter for new restaurant openings.” The company previously projected 62 to 66 new restaurants and has raised that to 64 to 68 for the year. However, Cava maintained its full-year same-store sales forecast of a 6% to 8% increase12345678.
As a CFO navigating uncertain times, Tolivar is prioritizing agility in thinking about the near term and, more importantly, the long term. That includes continued investments in team members through wages and benefits, a focus on customers, and driving positive traffic, she said.
Tolivar said a major part of Cava’s momentum is the company’s employees. At least once a quarter, executives spend time working at restaurants. “Whenever we go out into the restaurants, we always find something that we can do to help our teams and learn more about the guests and how we can make Cava even better,” Tolivar said.
What’s next for Cava’s menu innovation? “Pita chips are evolving as a platform,” Tolivar said. Cava recently launched hot harissa pita chips and garlic ranch pita chips. At the same time, the culinary team is working on a long-term pipeline that includes further menu innovation, she said.
I asked Tolivar if pita chips are still her favorite. “I love everything on the menu, but I do have a very soft spot for pita chips,” she said. “When my daughter and I dine at Cava, we definitely get them and fight for the last one.”
Have a good weekend. See you on Monday.
Sheryl Estradasheryl.estrada@fortune.com
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