Shares of Mediterranean fast-casual restaurants operator CAVA Group (NYSE:CAVA) are up in double digits today after its second-quarter revenue soared 62.5% year-over-year to $171.1 million, outperforming estimates by $7.9 million. Moreover, EPS at $0.21 too handily beat expectations by $0.23.
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In Q2, the company opened 16 net new restaurants with same-restaurant sales clocking an increase of 18.2%. CAVA now operates a total of 279 restaurants with digital revenue contributing 36.1% to its topline. Impressively, profit at the restaurant level surged by 91.9% to $44.6 million during the quarter.
Further, along with the rapidly expanding footprint, CAVA has also been witnessing gains on the back of higher footfalls as well as from menu price and product mix.
Looking ahead, for the full-year 2023, the restaurant chain expects to open 65 to 70 net new restaurants with same-restaurant sales growth hovering between 13% to 15%. Adjusted EBITDA for the year is anticipated to hover between $62 million and $67 million.
Overall, the Street has a $46.86 consensus price target on CAVA alongside a Strong Buy consensus rating. Since its IPO in June this year, shares of the company have had a bumpy ride, and after today’s gains are still nearly 10% lower compared to the all-time high of $57 levels.
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