CAVA Stock: Back In Growth Mode With Sizzling Comps (NYSE:CAVA)

CAVA Group reported first-quarter earnings that beat expectations on both revenue and same-store sales, sending shares higher in after-hours trading. The fast-casual Mediterranean chain posted revenue of $267.3 million, up 28% from a year earlier, and same-store sales growth of 12.3%, well above the 8.5% consensus estimate.

The company opened 14 new restaurants during the quarter, bringing its total to 345 locations. Management raised its full-year guidance, now expecting same-store sales growth of 8.5% to 9.5%, up from a prior range of 7% to 8%. Revenue guidance was lifted to a range of $1.12 billion to $1.14 billion.

CAVA's digital channel accounted for 36% of total sales, roughly flat with the prior quarter. The company said it saw strong traffic trends across all dayparts, with lunch and dinner both showing double-digit growth. Average check size rose 3.5%, driven by menu price increases taken in late 2024.

Restaurant-level margin came in at 25.4%, up 120 basis points from a year ago, as food costs eased and labor productivity improved. The company reported adjusted EBITDA of $47.2 million, up from $33.1 million in the same quarter last year.

CAVA ended the quarter with $245 million in cash and no debt. The company said it expects to open 54 to 57 new restaurants this year, with a focus on existing markets in the Southeast and Midwest.

Shares of CAVA have gained roughly 60% over the past 12 months, outperforming the broader restaurant sector. The stock trades at about 75 times forward earnings, a premium that reflects the company's growth trajectory and margin expansion story.

Management cited strong brand awareness and repeat customer visits as key drivers of the quarter's performance. The company said it has not seen any material impact from the recent spike in fuel prices, noting that its customer base skews toward higher-income households.

CAVA's next earnings report is expected in early August.