CAVA Group, Inc. (CAVA) delivered impressive results for the second quarter, exceeding analyst expectations and showcasing its continued growth trajectory. The company reported earnings of 17 cents per share, surpassing the consensus estimate of 12 cents by a significant 41.67%. Revenue also came in strong at $233.495 million, beating estimates by 7% and marking a substantial 35.05% increase year-over-year.
The success was driven by a combination of factors. Same-restaurant sales growth reached 14.4%, fueled by a 9.5% increase in customer traffic and a 4.9% rise attributed to menu price adjustments and product mix changes. Restaurant-level profit margin for the quarter reached 26.5%, a result of higher sales, partially offset by increased wage investments and input costs associated with the June 3 launch of grilled steak.
CAVA’s expansion strategy also continues to bear fruit. The company opened 18 net new restaurants during the quarter, bringing its total to 341 locations. This demonstrates their commitment to expanding their reach and further solidifying their market presence.
Brett Schulman, CEO of Cava Group, expressed satisfaction with the results, highlighting the brand’s strength and compelling value proposition. He emphasized the impressive 9.5% traffic growth, the opening of 18 new restaurants, and the strong performance of the new grilled steak offering, which exceeded initial expectations.
Looking ahead, CAVA has shown confidence in its future performance. The company raised its fiscal year 2024 adjusted EBITDA guidance from a range of $100 million to $105 million to a range of $105 million to $114 million. They also increased their same-restaurant sales growth forecast from between 4.5% and 6.5% to between 8.5% and 9.5%.
Following the release of these positive results, CAVA Group shares experienced a surge, rising 5.98% after-hours to $108.08 at the time of publication. This reflects investor confidence in the company’s continued success and growth potential.
