Cava Mediterranean Restaurant Chain Posts Profitable Quarter Since Going Public
New York City, NY – Cava, the popular Mediterranean restaurant chain, has reported a profitable quarter for the first time since its initial public offering (IPO) in June. The company’s stock surged 12% in extended trading, and shares have more than doubled in value since going public. Cava currently has a market value of $5.27 billion, as of Tuesday’s close.
In its first earnings report since going public, Cava revealed impressive financial figures for the quarter ended July 9. The company reported net income of $6.5 million, compared to a net loss of $8.2 million for the same period last year. Earnings per share stood at 21 cents, a significant improvement from the previous year’s loss of $6.23 per share.
One of the primary drivers behind Cava’s strong financial performance was its impressive revenue growth. Net sales soared by 62% to $172.9 million, fueled by the successful opening of new restaurants. Cava opened a total of 16 new locations during the quarter, bringing the chain’s total number of restaurants to 279.
Cava’s same-store sales also saw impressive growth, climbing by 18.2% in the second quarter. The company’s traffic increased by 10.3%, outstripping the broader restaurant industry’s declining customer visits. Interestingly, more than a third of Cava’s quarterly sales came from digital orders, highlighting the success of their online ordering platform.
Looking ahead to the rest of 2023, Cava has high expectations for continued growth. The company anticipates reporting same-store sales growth between 13% and 15% for the full year. Additionally, Cava plans to open between 65 to 70 new locations, further expanding its footprint in the Mediterranean cuisine market. The company is also forecasting adjusted earnings before interest, taxes, depreciation, and amortization of $62 million to $67 million.
Cava’s successful quarter has solidified its position as a leading player in the restaurant industry. Investors and industry analysts will be eagerly watching as the company continues to expand and innovate in the Mediterranean restaurant market.
Please note that this story is still developing. Stay tuned for updates.