CAVA Group shares jump as quarterly sales beat, cyclospora fears ease

CAVA Group (NYSE:CAVA) shares jumped 12.7% aft the fast-casual concatenation bushed second-quarter estimates connected some gross and earnings, with same-restaurant income climbing 9% and easing capitalist concerns implicit a caller cyclospora-linked slowdown successful the sector.

Revenue roseate 31.3% year-over-year to $365.4 million, topping estimates of $361 million, portion adjusted net per stock came successful astatine $0.19, up of the $0.18 consensus. Guest postulation accrued 5.3%, the institution said.

Adjusted EBITDA roseate 30% to $54.7 million, beating estimates of $52.1 million, and nett income accrued 25.3% to $23 cardinal versus estimates of $21.9 million.

Restaurant-level nett roseate 28.1% to $93.8 million, though restaurant-level nett borderline slipped 60 ground points to 25.7%.

The institution opened 17 nett caller restaurants successful the quarter, bringing its full to 476, and reported escaped currency travel of $44.8 million. Digital income made up 39% of revenue.

CAVA affirmed its full-year guidance, projecting adjusted EBITDA of $181 cardinal to $191 million, same-restaurant income maturation of 4.5% to 6.5%, and restaurant-level nett borderline of 23.7% to 24.3%. The institution inactive expects to unfastened 75 to 77 nett caller restaurants this year, with pre-opening costs of $22 cardinal to $22.5 million.

Analysts astatine Jefferies said quarter-to-date trends were amended than feared, with cyclospora-related headwinds moderating aft same-restaurant income bottomed successful the "flat to somewhat positive" scope successful mid-to-late July earlier recovering toward mid-single-digit percent maturation successful the astir caller week.

Jefferies attributed the postulation gains partially to the motorboat of a glazed salmon paper item, which is acceptable to tally done year-end, alongside continued request crossed income cohorts and higher spending connected premium items, sides and beverages.