Cava Group reported better-than-expected fourth-quarter earnings Monday night. Shares of the Mediterranean fast-casual chain, a 2023 IPO, jumped early Tuesday.
Cava Earnings
Cava earnings came in at two cents a share, Analysts had expected a break-even quarter, according to FactSet.
Revenue soared 52.5% to $175.5 million, slightly topping views of $174.3 million.
Same-restaurant sales grew 11.4%. That reflects a 6.2% gain in traffic and 5.2% from menu prices and product mixes. Same-store sales leapt 17.9% for the full year, above its November guidance for 15%-16%. Restaurant-level profit margins jumped 24.8%, above its November target of at least 24%.
Cava opened 19 net new locations in Q4. There are now 309 Cava eateries, up 30% vs. a year earlier.
Cava will hold a conference call to discuss Q4 results and provide a business update at 8:30 a.m. ET Wednesday morning.
Earnings had been set for Tuesday night, but were released a day early.
Cava Stock
Cava stock jumped 12.2% to 56.66 Tuesday, hitting a record 58.22 intraday. Shares fell 1% to 50.50 in Monday's market trading. Shares are now well out of range of 48.69 cup-with-handle buy point. But investors could treat 56.34 as a new or alternative handle buy point.
A break of the downtrend in the handle offered an aggressive entry Tuesday morning, with Monday's intraday high of 52.58 as a specific trigger.
Cava came public at 22 a share in June 2023. Shares hit a record 58.10 on Aug. 2, then exactly halved to 29.05 on Oct. 4 before rebounding.
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