Cava’s stock surged by 7% on Tuesday morning after the Mediterranean restaurant chain’s early release of its earnings report. Investors had anticipated Cava’s earnings announcement to occur after the bell on Tuesday afternoon. However, the company opted to issue its press release on Monday evening, prompted by the premature disclosure of results in news reports shortly after the market’s close.
Cava disclosed fourth-quarter net income of $2.05 million, equivalent to 2 cents per share, marking a notable shift from the prior year’s net loss of $18.85 million, or $13.72 per share. Analysts surveyed by LSEG, previously recognized as Refinitiv, had projected the company to break even for the quarter.
The chain experienced a remarkable 36% surge in revenue, reaching $177.1 million, which exceeded analysts’ projections of $174 million. Cava’s same-store sales surged by 11.4%, significantly surpassing StreetAccount estimates of 5.9% growth.
In its outlook for 2024, Cava aims to unveil between 48 and 52 new locations. The company anticipates same-store sales growth within the range of 3% to 5%, with adjusted earnings before interest, taxes, depreciation, and amortization projected to fall between $86 million and $92 million.
Since its initial public offering in June, Cava’s shares have skyrocketed by 145%. With the latest uptick in stock value, the restaurant chain now boasts a market capitalization of $6.14 billion.
