Despite posting an unexpected profit and impressive sales in the third quarter, Cava Group witnessed a decline in its stock shares.
The stock price fell 6.9% to $31.38 during Wednesday’s trading session. Cava Group’s shares, which began trading in June, have experienced a significant drop from their peak of $58.10 in late July.
In its recent earnings report, the fast-casual Mediterranean food chain announced a profit of $6.8 million, or 6 cents per share, for the third quarter. This is a notable improvement compared to the $11.9 million loss in the same period last year. Analysts surveyed by FactSet had predicted a loss of 1 cent per share for the quarter.
Not only did Cava Group achieve a profitable quarter, but it also saw a substantial increase in sales. Revenue soared to $175.6 million, surpassing analyst expectations of $171.5 million, according to FactSet. Same-restaurant sales also experienced robust growth, rising by 14.1%.
Based on its strong performance, Cava Group has raised its full-year guidance for same-restaurant sales growth. The company now expects growth between 15% and 16%, compared to the previously projected range of 13% to 15%. Furthermore, Cava Group has revised its outlook for new openings and restaurant-level profit margins.
In conclusion, Cava Group’s strong performance in Q3, including its unexpected profit and impressive sales growth, has positioned the company for continued success.
