Why Sweetgreen and Cava’s earnings are outperforming much of the fast-casual category

Greens are a staple of the menus at both Cava and Sweetgreen, and green is what both fast-casual restaurants seem to be rolling in, according to recent earnings reports. And their growth is all the more noteworthy because the economy appears to have stymied the broader fast-casual category.

Feta business bureau: Cava’s Mediterranean menu is not, to be sure, pita-ing out; the chain’s Q4 revenue grew 52.5% YoY to $175.5 million, thanks in part to opening 19 restaurants during the quarter, for a total of 309.

Even more dramatic was growth for the whole of 2023. Revenue increased 59.8% over 2022, to $717.1 million.

Sweetgreens are made of this: At Sweetgreen, Q4 revenue grew 29% YoY to $153 million. That growth came largely from price hikes: Of the 6% YoY increase in same-store sales, Sweetgreen attributed 5% to raising menu prices and just 1% to an increase in traffic in its restaurants.

For the full year, revenues increased 24% over 2022, to $584 million.

Healthy growth: A recent report from Placer.ai noted that restaurant visits slowed overall in 2023, as Cava and Sweetgreen’s increased:

• In December, as monthly visits for the fast-casual category fell 2.4%, they grew 40.1% for Cava and 38.8% at Sweetgreen.

“Both chains are known for their healthy offerings, which may attract the many consumers prioritizing health and wellness in their food choices,” the report stated. “Plant-forward meals have also been particularly popular recently, and both Cava and Sweetgreen’s produce-heavy menus align well with this trend.”