Published on 29 May 2024 on Zacks via Yahoo Finance

CAVA Group (CAVA) Q1 Earnings & Revenues Beat Estimates

CAVA Group, Inc. CAVA reported fiscal first-quarter 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate for the fourth straight time.Thanks to CAVA Group’s versatile Mediterranean concept and strong economic model, the company achieved its fourth straight quarter of net income and, for the first time, positive free cash flow. The company’s results also benefited from robust same restaurant sales.

Earnings & Revenues Discussion

The company reported adjusted earnings per share of 12 cents, beating the consensus estimate of 4 cents. In the prior-year quarter, the company had reported adjusted loss per share of $1.30.The company’s revenues increased 27.5% year over year to $259 million. The metric also surpassed the Zacks Consensus Estimate of $247 million. The increase in revenues can be primarily attributed to 86 new restaurant openings during or after the first quarter of fiscal 2023, and these new locations are performing better than the company’s expectation.CAVA's same restaurant sales grew by 2.3%, driven by a 3.5% rise due to higher menu prices and changes in product mix, which was slightly offset by a 1.2% decline in guest traffic.