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Key Takeaways
- Cava Group reported better-than-expected results for the fourth quarter as same-store sales surged.
- Cava said it anticipates this year’s same-store sales will grow 3% to 5%.
- Shares jumped Tuesday and were more than 150% above their initial public offering price last June.
Cava Group (CAVA) shares soared close to 12% in intraday trading Tuesday after the restaurant chain posted better-than-expected earnings and revenue as demand for its food surged.
The company reported a fourth-quarter profit of 2 cents per share, above expectations. Overall revenue rose 36% from a year ago to $177.1 million, and from its namesake restaurants, revenue jumped 52.5% to $175.5 million. Both were above estimates.
Cava same-store sales were up 11.4%, above forecasts, and restaurant-level profit margins increased 240 basis points (bps) to 22.4%, ahead of expectations.
The company added 19 restaurants during the period, giving it a total of 309. For fiscal 2024, it plans to add 48 to 52 more. In addition, it anticipates same-store sales growth of 3% to 5% this year, with revenue-level profit margin of 22.7% to 23.3%.
Cava was scheduled to release its results after the close of trading Tuesday, but after some numbers appeared in reports Monday, the company was prompted to release them earlier.
Shares of Cava were up about 12% at $56.48 as of 3:30 p.m. ET Tuesday. Cava Group began publicly trading last June after it sold shares in an initial public offering (IPO) at $22 each. With Tuesday’s gains, shares have more than doubled from their IPO price.
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