Cava reported a robust quarter with better-than-expected earnings and revenue, which led to an increase in its full-year outlook. The Mediterranean restaurant chain saw its net income soar to $19.7 million, or 17 cents per share, compared to $6.5 million, or 21 cents per share, in the previous year. Net sales also climbed a remarkable 35% to $233 million.
One of the standout points for Cava was its same-store sales growth, which rose by 14.4%. This exceeded StreetAccount estimates of 7.9%, showcasing the strong performance of the company’s existing locations. Despite the challenging economic environment where many restaurant chains are seeing a decline in visits, Cava managed to grow its traffic by 9.5% during the quarter.
Cava’s rapid expansion is also worth noting, with the company opening 18 net new locations in the quarter, bringing its total footprint to 341 restaurants. Looking ahead, the company has ambitious growth projections for the future. For fiscal 2024, Cava expects same-store sales growth to range between 8.5% to 9.5%, a significant increase from its previous forecast of 4.5% to 6.5%. Additionally, Cava plans to open 54 to 57 new locations this year, up from its initial projection of 50 to 54 restaurants.
Brett Schulman, the CEO and co-founder of Cava, credited the success of the chain’s restaurants to its new grilled steak option. This innovation resonated with customers and helped drive traffic to Cava’s locations. Schulman’s leadership and strategic vision have been instrumental in driving the company’s growth and success in a competitive market.
Investors have also taken notice of Cava’s performance, with the company’s stock rising by 7% in extended trading. The stock has more than doubled in value this year, pushing Cava’s market capitalization to about $11.6 billion. The strong quarterly results and optimistic outlook for future growth have positioned Cava as a standout player in the restaurant industry.
Overall, Cava’s impressive performance in the past quarter, coupled with its ambitious expansion plans and strong leadership, signal a promising future for the company. With a focus on innovation, customer-centric offerings, and strategic growth, Cava is poised to continue its upward trajectory and solidify its position as a leader in the competitive restaurant landscape.