A banner for the Mediterranean restaurant chain Cava is displayed outdoors of the New York Inventory Trade (NYSE) as the corporate goes public on June 15, 2023 in New York Metropolis.
Spencer Platt | Getty Photos
Cava on Tuesday posted a worthwhile quarter for its first earnings report since its preliminary public providing in June.
Cava’s inventory surged as a lot as 12% in prolonged buying and selling. Shares have greater than doubled in worth since its IPO, fueled largely by its blockbuster public market debut.
The Mediterranean restaurant firm has a market worth of $5.27 billion, as of Tuesday’s shut.
This is what the corporate reported for the quarter ended July 9:
Earnings per share: 21 centsRevenue: $172.9 million vs. $163 million
Cava reported second-quarter internet revenue of $6.5 million, or 21 cents per share, swinging from a internet lack of $8.2 million, or $6.23 per share, a 12 months earlier.
CNBC doesn’t evaluate reported earnings per share to Wall Road estimates for an organization’s first report as a public firm, as unsure share counts can skew expectations.
Web gross sales soared 62% to $172.9 million, fueled by new restaurant openings. The chain mentioned it opened 16 internet new Cava eating places throughout the interval, for a complete of 279.
Cava’s same-store gross sales climbed 18.2% within the quarter. The chain mentioned its site visitors grew 10.3%, making it an outlier within the broader restaurant business, which has seen buyer visits shrink in latest months. CFO Tricia Tolivar attributed among the chain’s robust site visitors to elevated model consciousness after the corporate’s IPO.
Nevertheless, Tolivar additionally mentioned that same-store gross sales development has moderated in latest weeks. Extra diners have additionally shifted from supply orders to choosing up their very own heat bowls and salads, suggesting that Cava’s buyer base could also be pulling again on their restaurant spending.
Rival Sweetgreen reported an identical development. Supply orders are typically pricier due to added charges.
Cava’s menu costs have been up practically 8% in contrast with the year-ago interval, although executives mentioned the restaurant chain has no plans to lift costs additional.
Greater than a 3rd of Cava’s quarterly gross sales got here from digital orders within the quarter.
Looking forward to 2023, Cava expects to report same-store gross sales development for the complete 12 months of between 13% and 15%. CEO Brett Schulman cited broader financial pressures, like rising rates of interest and gasoline costs, as the first motive for the cautious gross sales forecast.
The corporate plans to open between 65 to 70 new areas. It is also forecasting adjusted earnings earlier than curiosity, taxes, depreciation and amortization of $62 million to $67 million.