CAVA Group Inc

NYSE:CAVAUnited States

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• DJ Correction to Fast-Casual Restaurant Cava Posts Stellar Earnings. The CEO Sees a 'Tipping Point' in Demand. -- Barrons.com, from 2 hours ago by Dow Jones

  2 hours ago by Dow Jones
  Companies Mentioned: CAVA
  By Evie Liu Mediterranean fast-casual restaurant brand Cava posted third-quarter results that crushed Wall Street expectations. For the three months ended Oct. 6, Cava's total revenue increased 39% from the year-ago quarter to $241.5 million, beating the consensus expectation of $233.1 million from analysts polled by FactSet. Earnings came in at 16 cents per share, also higher than the expected 11 cents and marks 67% growth from a year ago. "Mediterranean is the next large-scale cultural cuisine category," CEO Brett Schulman told Barron's. "What we've been working to build over the last 14 years is hitting a tipping point." Cava's revenue growth was primarily driven by 73 new restaurant openings over the past year. The company opened 11 new restaurants in the third quarter, bringing the total count to 352. But existing restaurants are also seeing a consistent uptick in popularity. Same-restaurant sales grew by 18% year over year, mostly driven by a 13% increase in guest traffic. Schulman noted that the growth in same-restaurant sales was all organic, since the company didn't increase advertising or marketing spending. The average unit sales reached $2.8 million, up from $2.6 million in the year-ago period. The average price of products sold -- due to both higher menu prices and consumers buying more expensive items -- increased 5%, the company said. "When AB 1228 went into effect in California, we were the only limited-service brand that did not pass along any price increases to our guests," Schulman says. AB 1228 is bill that raised California fast-food workers' minimum wage from $16 to $20 per hour. Cava said it doesn't plan to raise prices again this year. Cava offers high-quality ingredients, bold and adventurous flavors, as well as convenient digital access and an engaging physical experience, Schulman told Barron's. "I think that's all coming together to see people trading down from legacy, full-service chains, trading up from traditional fast food, and trading over from other fast casual players," he adds. Consumer demand has been strong across many different markets regardless of the geographic location, the CEO added. That allowed the company to cast a wide net and source a deep pipeline of real estate to bring Mediterranean food to communities across the country. "We've been able to drive down the income strata and appeal to a much broader, wider audience," he told Barron's. Cava recently redesigned its loyalty program, which has already led to a 200 basis-point percentage increase in the share of revenue that comes through the loyalty channel. "It's clearly engaging our guests more and having more people adopt into the program," the CEO says. Cava raised guidance for fiscal full-year 2024 that ends in December. Management now expects same-restaurant sales to grow 12% to 13% for the year, up from the range of 8.5% to 9.5% predicted in August. Restaurant-level profit margin is expected to reach 24.5% to 25%, slightly higher than the range of 24.2% to 24.7% from August. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization are expected to be between $121 million and $126 million for the full year, up from August's outlook of between $109 million and $114 million. Write to Evie Liu at evie.liu@barrons.com This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. Corrections & Amplifications Cava raised its adjusted Ebitda guidance. An earlier version of this article incorrectly stated the company's guidance had fallen. (END) Dow Jones Newswires November 12, 2024 17:26 ET (22:26 GMT)

• DJ Fast-Casual Restaurant Cava Posts Stellar Earnings. The CEO Sees a 'Tipping Point' in Demand. -- Barrons.com, from 2 hours ago by Dow Jones

  2 hours ago by Dow Jones
  Companies Mentioned: CAVA
  
  By Evie Liu
  
  Mediterranean fast-casual restaurant brand Cava posted third-quarter results that crushed Wall Street expectations.
  
  For the three months ended Oct. 6, Cava's total revenue increased 39% from the year-ago quarter to $241.5 million, beating the consensus expectation of $233.1 million from analysts polled by FactSet.
  

• DJ Cava Dodges Restaurant Industry Woes With Earnings Beat -- WSJ, from 2 hours ago by Dow Jones

  2 hours ago by Dow Jones
  Companies Mentioned: CAVA
  
  By Roshan Fernandez
  
  During tight times for the restaurant industry, Mediterranean-style chain Cava says its business is excelling.
  
  The fast-casual chain on Tuesday reported quarterly results that surpassed analysts' expectations for sales, profit and earnings per share, while raising its full-year guidance.
  

• DJ Cava Posts Higher 3Q Profit, Revenue on High Demand, from 2 hours ago by Dow Jones

  2 hours ago by Dow Jones
  Companies Mentioned: CAVA
  
  By Kailyn Rhone
  
  Cava Group posted better-than-expected earnings and revenue in its latest quarter driven by strong demand.
  
  The Mediterranean restaurant chain said on Tuesday it logged net income for the third quarter of $18 million, or 15 cents a share, compared with $6.8 million, or six cents a share, in the prior-year period. Analysts polled by FactSet expected 11 cents a share.
  

• CAVA Group Fiscal Q3 Earnings, Revenue Rise; Fiscal 2024 Guidance Lifted -- Shares Jump After Hours, from 2 hours ago by MT Newswires

  2 hours ago by MT Newswires
  Companies Mentioned: CAVA
  04:30 PM EST, 11/12/2024 (MT Newswires) -- CAVA Group (CAVA) reported fiscal Q3 earnings late Tuesday of $0.15 per diluted share, up from $0.06 a year earlier. Analysts polled by Capital IQ expected $0.11. Revenue for the quarter ended Oct. 6 was $2...