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Key Takeaways
- Cava Group raised its 2024 same-store sales estimate to 9% from 5.5% at the midpoint.
- Same-store sales grew 14.4% year-over-year and Cava added a net 18 locations in the second quarter.
- CEO Brett Schulman said the company’s new grilled steak offering was performing better than expected.
- Shares soared 17% in intraday trading Friday and are up more than 175% in 2024.
Cava Group (CAVA) shares surged in intraday trading Friday, a day after the company raised its 2024 guidance and said its new grilled steak is “significantly outperforming” expectations.
The fast-casual Mediterranean chain boosted its 2024 same-store sales estimate to 9% from 5.5% at the midpoint and its adjusted EBITDA midpoint projection to $111.5 million from $102.5 million. In the second quarter, sale-store sales growth was 14.4% year-over-year, and Cava added 18 net new locations.Â
Revenue for the period grew 35% to $233.5 million but diluted earnings per share (EPS) declined by 4 cents to 17 cents. Both topped consensus expectations of analysts polled by Visible Alpha.Â
New Steak Offering ‘Significantly Outperforming’ Expectations
Chief Executive Officer (CEO) Brett Schulman attributed the revenue bump in part to a new protein dish.Â
“We launched our new grilled steak main, once again exhibiting our excellence in culinary innovation,” Schulman said. “Grilled steak is significantly outperforming our expectations and giving guests another reason to visit CAVA and come back more often.”
Shares of Cava Group jumped about 17% to $119.21 as of 10:30 a.m. ET Friday and are up more than 175% in 2024.