On August 12, CAVA Group Inc. rose 11.03% in regular trading, trading at $69.5/share, with turnover of $118 million. The rally was driven by the company's stronger-than-expected fiscal second-quarter results released after market close the prior session.

CAVA reported Q2 revenue of $368.4 million, up 31.3% year-over-year, exceeding the consensus estimate of $360.1 million. Adjusted earnings per share came in at $0.19, beating the $0.18 estimate and representing an 18.75% increase from $0.16 a year ago. The company reaffirmed its full-year same-restaurant sales growth outlook of 4.5% to 6.5%. During the quarter, CAVA added 17 net new restaurants, bringing total store count to 476.

The CFO noted that same-store sales briefly flattened in early July due to cyclospora-related concerns but subsequently rebounded to mid-single-digit growth. Jefferies assigned a Buy rating with a $95 price target, while RBC raised its target to $95 from $90, maintaining an Outperform rating. Analysts broadly view the guidance as conservative given underlying demand resilience.

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