CAVA Group, Inc.CAVA
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Cooling wholesale food inflation lowers input costs for CAVA, improving margins.
Impact on stocks 1
Consumer Discretionary
CAVA Group, Inc.Shares of CAVA Group jumped 3.8% in afternoon trading after a government report showed cooling wholesale food inflation, adding to momentum from the company's strong second-quarter earnings. The Producer Price Index for processed foods and feeds fell 0.5% in July, signaling lower input costs for restaurants. CAVA reported total revenue of $368.4 million, up 31.3% year-over-year, with same-restaurant sales growth of 9% and adjusted EBITDA of $54.72 million. Full-year EBITDA guidance of $186 million at the midpoint came in slightly below the $190.6 million estimate, but investors focused on traffic growth and margin outlook. The stock closed at $72.20, up 3.9% from the previous close.
CAVA Group, Inc.Cooling wholesale food inflation lowers input costs for CAVA, improving margins.