A banner for the Mediterranean restaurant chain Cava is displayed outside of the New York Stock Exchange (NYSE) as the company goes public on June 15, 2023 in New York City.
Spencer Platt | Getty Images
Cava’s stock rose 7% on Tuesday morning after the Mediterranean restaurant chain released its earnings report a day early.
Investors were expecting Cava to announce its earnings after the bell on Tuesday afternoon, but the company issued its press release Monday evening instead after early versions of the results appeared in news reports shortly after market close.
Cava reported fourth-quarter net income of $2.05 million, or 2 cents per share, swinging from a net loss of $18.85 million, or $13.72 per share, a year earlier. Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, were expecting the company to break even for the quarter.
The chain’s revenue soared 36% to $177.1 million, topping analysts’ expectations of $174 million. Cava’s same-store sales climbed 11.4%, crushing expectations of 5.9% growth, according to StreetAccount estimates.
For 2024, Cava is planning to open between 48 and 52 new locations. The company is forecasting same-store sales growth of 3% to 5% and adjusted earnings before interest, taxes, depreciation and amortization of $86 million to $92 million.
Cava’s shares have soared 145% since its initial public offering in June. Including Tuesday’s stock move, the restaurant chain has a market value of $6.14 billion.
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