CAVA Group shares jumped 12.7% after the fast-casual chain beat second-quarter estimates on both revenue and earnings, with same-restaurant sales climbing 9% and easing investor concerns over a recent cyclospora-linked slowdown in the sector. Revenue rose 31.3% year-over-year to $365.4 million, topping estimates of $361 million, while adjusted earnings per share came in at $0.19, ahead of the $0.18 consensus. Adjusted EBITDA rose 30% to $54.7 million, beating estimates of $52.1 million, and net income increased 25.3% to $23 million versus estimates of $21.9 million. The company opened 17 net new restaurants in the quarter, bringing its total to 476, and affirmed its full-year guidance, projecting adjusted EBITDA of $181 million to $191 million and same-restaurant sales growth of 4.5% to 6.5%. Analysts at Jefferies said quarter-to-date trends were better than feared, with cyclospora-related headwinds moderating after same-restaurant sales bottomed in the flat to slightly positive range in mid-to-late July before recovering toward mid-single-digit percentage growth in the most recent week.
CAVA Group, Inc.Beat Q2 estimates on revenue and earnings, raised EBITDA, and affirmed guidance.
