WASHINGTON - CAVA Group, Inc. (NYSE:CAVA) saw its shares soar 15% in after-hours trading on Tuesday after the Mediterranean fast-casual restaurant chain reported third-quarter results that handily beat Wall Street expectations.
The company posted adjusted earnings per share of $0.15, significantly surpassing the analyst estimate of $0.07. Revenue for the quarter came in at $241.5 million, well above the consensus forecast of $212.79 million and representing a 39% increase from $173.8 million in the same period last year.
CAVA's strong performance was driven by robust same-restaurant sales growth of 18.1%, including a 12.9% increase in guest traffic. The company opened 11 net new restaurants during the quarter, bringing its total count to 352 locations.
"Our third quarter results demonstrate the strength of our Mediterranean category-defining brand and the broad appeal of our unique value proposition," said Brett Schulman, Co-Founder and CEO of CAVA.
The company's restaurant-level profit margin expanded to 25.6% from 25.1% a year ago, despite higher labor costs and expenses related to the launch of grilled steak.
Encouraged by the strong results, CAVA raised its full-year 2024 guidance. The company now expects same-restaurant sales growth of 12% to 13%, up from its previous forecast of 8.5% to 9.5%.
CAVA's digital revenue mix stood at 35.8% for the quarter, highlighting the growing importance of its online ordering channels.
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