A banner for the Mediterranean restaurant chain Cava is displayed outside of the New York Stock Exchange (NYSE) as the company goes public on June 15, 2023 in New York City.
Spencer Platt | Getty Images
Cava on Tuesday posted a profitable quarter for its first earnings report since its initial public offering in June.
Cava’s stock whipsawed on the report, rising as much as 7% and falling as much as 3% in extended trading. Shares have more than doubled in value since its IPO, fueled largely by its blockbuster public market debut.
The Mediterranean restaurant company has a market value of $5.27 billion, as of Tuesday’s close.
Here’s what the company reported for the quarter ended July 9:
- Earnings per share: 21 cents
- Revenue: $172.9 million vs. $163 million
Cava reported second-quarter net income of $6.5 million, or 21 cents per share, swinging from a net loss of $8.2 million, or $6.23 per share, a year earlier.
Net sales soared 62% to $172.9 million, fueled by new restaurant openings. The chain said it opened 16 net new Cava restaurants during the period, for a total of 279.
Cava’s same-store sales climbed 18.2% in the quarter. The chain said its traffic grew 10.3%, making it an outlier in the broader restaurant industry, which has seen customer visits shrink in recent months.
More than a third of Cava’s quarterly sales came from digital orders.
Looking ahead to 2023, Cava expects to report same-store sales growth for the full year of between 13% and 15%. The company plans to open between 65 to 70 new locations. It’s also forecasting adjusted earnings before interest, taxes, depreciation and amortization of $62 million to $67 million.
This story is developing. Please check back for updates.
