Cava Group Q1 Earnings: Revenue Beat, EPS Beat, Guidance Raise, Continued Investments In Scalable Infrastructure And More

CAVA Group Inc CAVA reported financial results for the first quarter of fiscal 2024 after market close on Tuesday. Here’s a look at the key metrics from the quarter.

Q1 Earnings: Cava’s first-quarter revenue increased 30.3% year-over-year to $256.3 million, which beat the consensus estimate of $245.935 million, according to Benzinga Pro. The Mediterranean fast-casual restaurant chain company reported quarterly earnings of 12 cents per share, which beat analyst estimates of 5 cents per share.

Net cash provided by operating activities totaled $38.4 million in the first quarter. The company generated $4.7 million of free cash flow during the quarter.

Cava reported the same restaurant sales growth of 2.3%. The company said it opened 14 new restaurants during the quarter, bringing total locations up to 323, up 22.3% year-over-year.

“CAVA’s results in the first quarter demonstrate the strength of our category-defining brand, our clear leadership position in Mediterranean and our compelling differentiated value proposition,” said Brett Schulman, co-founder and CEO of Cava Group.

“We opened 14 net new restaurants and as we continue to invest in scalable infrastructure to support our growth, we are in a strong position to capture the significant whitespace opportunity ahead of us.”

FY24 Outlook: Cava expects full-year same-restaurant sales growth to be between 4.5% and 6.5%, up from a prior range of 3% to 5%. Full-year adjusted EBITDA is expected to be between $100 million and $105 million, up from a prior range of $86 million to $92 million. Cava noted it expects to open between 50 and 54 new restaurants throughout 2024.

Management will hold a conference call to discuss the company’s quarterly results at 5 p.m. ET.

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CAVA Price Action: Cava shares were up approximately 91% year-to-date heading into the print. The stock was down 6.91% after hours on Tuesday at $76.60 at the time of publication, according to Benzinga Pro.

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