CAVA shares gain 6% as Mediterranean chain exeeds Q2 expectations

WASHINGTON - CAVA Group, Inc. (NYSE:CAVA) saw its shares jump 6.6% after the fast-casual Mediterranean restaurant chain reported second-quarter earnings and revenue that surpassed analyst estimates.

The company posted adjusted earnings per share of $0.17, beating the consensus forecast of $0.10. Revenue climbed 35.2% YoY to $231.4 million, exceeding expectations of $209.7 million.

CAVA's same-restaurant sales growth was robust at 14.4%, including traffic growth of 9.5%. The company opened 18 net new restaurants during the quarter, bringing its total to 341 locations.

"Our results in the second quarter continued to demonstrate the strength of our category-defining brand and our unique and compelling value proposition," said Brett Schulman, Co-Founder and CEO.

Restaurant-level profit margin expanded to 26.5% from 26.1% a year ago, despite higher labor costs and expenses related to the launch of grilled steak in June.

Looking ahead, CAVA raised its full-year 2024 guidance. The company now expects adjusted EBITDA of $109 million to $114 million, up from its previous outlook of $100 million to $105 million.

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Source: Investing.com