CAVA Group Inc. shares surged 8.05% in after-hours trading on Tuesday, following the release of the company's fourth-quarter fiscal 2025 financial results, which exceeded analyst expectations on key metrics.
The Mediterranean fast-casual restaurant chain reported adjusted earnings per share of $0.04, beating the consensus estimate of $0.03. Revenue for the quarter reached $274.99 million, surpassing expectations of $267.9 million. Notably, same-restaurant sales increased by 0.5% during the period, contrasting with analyst forecasts for a decline.
Investors reacted positively to the company's forward-looking guidance. CAVA projected fiscal 2026 same-restaurant sales growth between 3.0% and 5.0%, which exceeds the average analyst estimate of 3.16%. The company also plans to open 74 to 76 new restaurants in the coming year, signaling continued expansion. While the company acknowledged margin pressures from higher commodity and operational costs, the strong top-line performance and optimistic sales outlook provided a catalyst for the significant after-hours price movement.
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