WASHINGTON - CAVA Group, Inc. (NYSE: CAVA), a leader in the Mediterranean fast-casual restaurant space, reported a robust first quarter with a 30.3% increase in revenue, reaching $256.3 million, surpassing analyst expectations of $237.16 million.
The company also posted an adjusted earnings per share (EPS) of $0.12, a significant beat compared to the consensus estimate of -$0.01.
Despite the strong performance, shares of CAVA Group fell by 5% in afterhours trading following the earnings release.
CAVA's first quarter saw notable achievements, including 14 new restaurant openings, contributing to a total of 323 locations, marking a 22.8% increase in the total number of CAVA Restaurants year-over-year (YoY). The company also experienced a 2.3% growth in same restaurant sales and an improvement in the average unit volume (AUV) from $2.5 million to $2.6 million compared to the previous year. Additionally, the company achieved its first-ever positive free cash flow and reported a net income of $14.0 million, a significant turnaround from the net loss of $2.1 million in the same quarter last year.
Brett Schulman, Co-Founder and CEO of CAVA, attributed the strong quarter to the company's category-defining brand and strategic investments. "Driven by our highly portable Mediterranean concept and powerful unit economic engine, we generated our fourth consecutive quarter of net income and our first quarter ever of positive free cash flow," Schulman said.
Looking ahead, CAVA has raised its full-year 2024 guidance, now expecting 50 to 54 net new restaurant openings, same restaurant sales growth of 4.5% to 6.5%, and a restaurant-level profit margin between 23.7% and 24.3%. The company also anticipates adjusted EBITDA to be between $100.0 million and $105.0 million, marking a significant increase from the previous forecast of $86.0 million to $92.0 million.
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