Cava Group posted better-than-expected revenue in its latest quarter, a sign consumers are still willing to spend on food despite generally higher prices across the board.
The Mediterranean restaurant chain logged net income of $19.7 million, or 17 cents a share, for the second quarter ended July 14, up from $6.5 million, or 21 cents a share, in the prior-year period. Analysts polled by FactSet expected 11 cents a share.
Revenue rose to $233.5 million from $172.9 million. Analysts polled by FactSet expected $219.5 million.
Cava attributed the top line growth to 78 new restaurant openings during or subsequent to the quarter and same restaurant sales growth north of 14%, which it credited to higher guest traffic and increases from menu price and product mix.
Chief Executive Brett Schulman said traffic grew 9.5% in the quarter and that its grilled steak offering is outperforming its expectations.
Cava raised its guidance for 2024. The company now sees adjusted earnings before interest, taxes, depreciation and amortization between $109 million and $114 million, compared to prior expectations in the range of $100 million and $105 million. It also sees same restaurant sales growth between 8.5% and 9.5% compared to previous estimates between 4.5% and 6.5%.
Cava Group jumped 9% in extended trading.
