Mediterranean fast-casual chain CAVA Group Inc (CAVA) just served up a tasty earnings surprise. The company reported its second-quarter results after the bell on Tuesday, and investors are clearly hungry for more.
Let's dig into the numbers. Cava posted revenue of $365.43 million for the quarter, edging past the consensus estimate of $360.53 million. Adjusted earnings came in at 19 cents per share, also beating expectations of 18 cents. Not bad for a quarter that could have been overshadowed by broader market jitters.
The growth story here is compelling. Total revenue jumped 31.3% year-over-year, fueled by a 9% increase in same-restaurant sales. That's not just inflation doing the heavy lifting; guest traffic grew 5.3%, meaning more people are actually walking through the doors. In a world where consumers are increasingly picky about where they spend their dining dollars, that's a strong signal.
CEO Brett Schulman summed it up nicely: "Our second quarter results underscore the continued strength of our category-defining brand and the resonance of our value proposition with today's consumer."
The company also kept expanding its footprint, opening 17 new restaurants during the quarter to bring the total to 476 locations, up 19.6% year-over-year. And they're sitting on a healthy pile of cash, with $322.76 million in cash and cash equivalents at the end of the period.
Looking ahead, Cava reaffirmed its guidance for 2026, expecting same-restaurant sales growth of 4.5% to 6.5%, adjusted EBITDA of $181 million to $191 million, and 75 to 77 new restaurant openings this year. That's a confident outlook, and the market seems to agree.
Shares were up 6.84% in after-hours trading, changing hands at $65 at the time of publication. For a stock that's been on a tear, this earnings beat is just more fuel for the fire.
