Overview
- For the quarter ended Oct. 5, same-restaurant sales rose 1.9% with revenue around $292 million and adjusted EPS of $0.12, both coming in below consensus.
- Cava cut full-year same-store sales guidance to 3%–4% and trimmed its restaurant-level margin outlook to 24.4%–24.8%, marking a second reduction this year.
- Management said tariffs delivered roughly a 20 basis point hit to the quarter, largely tied to imported beef costs.
- Shares fell after hours following the report, and several firms lowered price targets, including TD Cowen, KeyBanc, Stifel, Piper Sandler, Bernstein and Barclays.
- The company opened 17 net restaurants in the quarter to reach 415 locations and said it is gaining market share with relative strength among lower-income customers due to restrained pricing.