Cava Same-Store Sales Gains Boost Earnings in 2Q

Dow Jones
Aug 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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