Cava's Sales Keep Growing as 1Q Revenue, Profit Increase

Dow Jones
May 16

By Roshan Fernandez

Cava Group reported an increase in revenue and profit driven by same restaurant sales growth and new store openings.

The Mediterranean fast-casual chain on Thursday reported a first-quarter profit of $25.7 million, or 22 cents a share, for the period ending April 20. That compared with $14 million, or 12 cents a share, a year earlier.

Excluding one-time items, per-share earnings were 22 cents, beating the 14 cents analysts were expecting, according to FactSet.

Cava Group revenue rose to $331.8 million from $259 million a year earlier. Analysts surveyed by FactSet had forecast sales of $326.8 million.

Same restaurant sales were up 11%, primarily due to an almost 8% increase in guest traffic. It's the fourth-straight quarter the company has notched double-digit growth in its total same restaurant sales.

For the full year, Cava upped its guidance for adjusted earnings before interest, taxes, depreciation and amortization to $152 million to $159 million, an increase of $2 million at both ends of the range.

The company said it expected net new Cava openings to be between 64 and 68 stores, up from 62 to 66 previously.

Pre-opening costs for the full-year are up by $500,000 on either end of the range to $14.5 million to $15.5 million.

Cava has employed a suburban focused growth strategy, according to a report from data firm Placer.ai, and has seen the median household income of the areas around its stores drop over the years.

"Even as CAVA expands its reach among a wider range of suburban visitors, it has maintained its core audience," the report said. "While a substantial portion of wealthy customers remains, the chain has effectively opened itself up to a larger and more diverse pool of visitors."

Write to Roshan Fernandez at roshan.fernandez@wsj.com

 

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May 15, 2025 16:49 ET (20:49 GMT)

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