Cava Same-Store Sales Gains Boost Earnings in 2Q

Dow Jones
08/12

CAVA Group Inc. said revenue and earnings were boosted by new store openings and climbing customer traffic in the second quarter.

The Mediterranean fast-casual restaurant chain posted a profit of $23 million, or 19 cents a share, for the quarter ended July 12, compared with $18.4 million, or 16 cents a share, in the same period a year earlier.

The per-share result beat analyst projections by a penny, according to FactSet.

Revenue climbed 31% to $365.4 million, topping analyst forecasts for $360 million.

Same-store sales, which account for restaurant openings and closings, rose 9%. That topped analyst projections for a 7.1% gain, marking the third consecutive quarter of outperformance for the closely watched metric.

Cava opened 17 net new restaurants during the quarter and saw its guest traffic grow 5.3%.

Shares rose more than 11% after hours.

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