CAVA Group (NYSE:CAVA) saw its shares jump over 16% in pre-market today after reporting third-quarter results that significantly outpaced Wall Street expectations. The Mediterranean fast-casual restaurant chain delivered adjusted earnings per share of $0.15, more than double the Wall Street analyst forecast of $0.07. Revenue for the quarter soared to $241.5 million, beating the consensus estimate of $212.79 million and marking a 39% increase for the same period last year.
CAVA’s impressive growth was fueled by an 18.1% increase in same-restaurant sales, driven by a 12.9% rise in guest traffic. The company also expanded its footprint by opening 11 net new restaurants during the quarter, bringing its total to 352 locations.
Restaurant-level profit margins improved to 25.6%, up from 25.1% a year earlier, despite challenges such as higher labor costs and expenses related to the introduction of grilled steak. These results underscored the brand’s strong market position and its ability to attract a broad customer base.
Buoyed by its strong performance, CAVA raised its full-year 2024 guidance. The company now anticipates same-restaurant sales growth of 12% to 13%, up from its previous projection of 8.5% to 9.5%, signaling continued confidence in its growth trajectory.