The stock of Cava (CAVA) is up 8% after the Mediterranean restaurant chain reported financial results that beat Wall Street forecasts and raised its forward guidance.
The Washington, D.C.-based company announced earnings per share (EPS) of $0.17 U.S. versus $0.13 U.S. that was expected among analysts.
Revenue for the year’s second quarter totaled $233 million U.S. compared to $220 million U.S. that was the consensus estimate on Wall Street. Overall sales were up 35% from a year earlier.
Cava said that its same-store sales rose 14.4%, nearly doubling the analyst forecast of 7.9%.
Management added that traffic at its restaurant locations rose 9.5% year-over-year in the quarter and said the company’s new grilled steak option has been attracting customers.
Cava opened 18 new locations during the quarter, bringing its total network across the U.S. to 341 restaurants.
In terms of guidance, Cava said it now expects same-store sales growth of 8.5% to 9.5% this year, up from a previous outlook of 4.5% to 6.5% growth.
The company expects to open 54 to 57 new locations this year, up from a previous forecast of 50 to 54 restaurants.
Looking ahead, management said they expect to report a full-year profit of $109 million U.S. to $114 million U.S. That’s up from a previous guide of $100 million U.S. to $105 million U.S.
Prior to today (Aug. 23), the stock of Cava had risen 150% this year to trade at $101.98 U.S. per share.
The company’s stock has increased 167% since holding its initial public offering (IPO) in June 2023.
