Cava Group Stock Climbs On Q2 Results: EPS Beat, Sales Beat, Raises Guidance

CAVA Group, Inc. CAVA reported its second-quarter earnings after the closing bell Thursday. Here's a look at the details from the report. 

The Details: Cava Group reported quarterly earnings of 17 cents per share which beat the analyst consensus estimate of 12 cents by 41.67%. Quarterly sales clocked in at $233.495 million, beating the analyst consensus estimate by 7% and representing a 35.05% increase from the same period last year.

• The company saw same-restaurant sales growth of 14.4% which consisted of traffic growth of 9.5% and a 4.9% increase from menu price and product mix.
• Restaurant-level profit margin was 26.5% for the quarter with the increase due to higher sales, partially offset by incremental wage investments and input costs associated with the June 3 launch of grilled steak.
• The company opened 18 net new CAVA restaurants, bringing its total to 341 locations.

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“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, Cava Group’s CEO.

“During the quarter, traffic grew 9.5%, we opened 18 net new restaurants and, driven by the power of our unit economic engine, generated average unit volume of $2.7 million. In addition, we launched our new grilled steak main, once again exhibiting our excellence in culinary innovation. Grilled steak is significantly outperforming our expectations and giving guests another reason to visit CAVA and come back more often.”

Outlook: Cava raised its fiscal year 2024 adjusted EBIDTA guidance from a range of $100 million to $105 million to a range of $105 million to $114 million and raised its same-restaurant sales growth forecast from between 4.5% and 6.5% to between 8.5% and 9.5%.

CAVA Price Action: According to Benzinga Pro, Cava Group shares are up 5.98% after-hours at $108.08 at the time of publication Thursday.

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