Mediterranean fast-casual restaurant chain CAVA Group, Inc. (NYSE:CAVA) stock traded higher in premarket action Wednesday after the company reported first-quarter results that topped Wall Street expectations and raised its full-year outlook.

First-Quarter Results Beat Estimates

The company reported first-quarter revenue of $438.27 million, surpassing the analyst consensus estimate of $411.25 million. Adjusted earnings came in at 20 cents per share, above analysts' expectations of 17 cents per share.

Food, beverage and packaging costs improved 20 basis points year over year to 29.1% of revenue, helped by a favorable menu mix.

However, management said the nationwide rollout of salmon is expected to pressure margins by about 100 basis points through the remainder of fiscal 2026.

Adjusted EBITDA increased 37.6% year over year to $61.7 million, driven by strong comparable sales growth and contributions from new restaurant openings.

The company ended the quarter with no debt and $403 million in cash and investments.

The company said the results reflect the "structural strength" of its business and its leadership position in the Mediterranean restaurant category, ...