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yesterday

Cava Cuts Same-Store Sales Forecast as Shares Slide

The Mediterranean chain narrowed its full-year comparable-sales outlook after reporting 2.1% Q2 growth, maintaining EBITDA and margin goals

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The logo for Cava Group, a Mediterranean restaurant chain, is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 22, 2023. REUTERS/Brendan McDermid/File Photo
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Overview

  • Cava posted Q2 net income of $18.4 million, revenue near $280 million and same-store sales growth of just 2.1%.
  • The company trimmed its full-year same-store sales guidance to 4%–6%, down from a prior range of 6%–8%, citing softer traffic and product-timing effects.
  • Shares fell more than 20% in extended trading and several sell-side firms cut price targets as analysts revised valuation models.
  • Management reaffirmed full-year adjusted EBITDA guidance of $152 million–$159 million and restaurant-level margins of 24.8%–25.2% while boosting its new-store opening target to 68–70.
  • Cava joined a $25 million Series B funding round for automation startup Hyphen to boost operational efficiency as it navigates a fluid macroeconomic environment.