Overview

* CAVA ( CAVA ) fiscal Q2 revenue grows 20.3% yr/yr but misses analyst expectations

* Company opened 16 net new restaurants, total now 398

* CAVA ( CAVA ) net income for Q2 was $18.4 mln, slightly down from last year

Outlook

* CAVA Group ( CAVA ) forecasts same restaurant sales growth of 4.0% to 6.0%

* Company maintains restaurant-level profit margin guidance at 24.8% to 25.2%

Result Drivers

* NEW RESTAURANTS - Revenue growth driven by 75 net new restaurant openings since Q2 2024, exceeding Co's performance expectations

* MENU PRICING - Same restaurant sales growth of 2.1% attributed to menu price adjustments and product mix

* COST PRESSURES - Profit margin slightly declined due to higher input costs and wage investments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $280.62 $285.60

Revenue mln mln (14

Analysts

)

Q2 Net $18.37

Income mln

Q2 $19.64

Income mln

from

Operatio

ns

Q2 $23.70

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for CAVA Group Inc ( CAVA ) is $111.00, about 25.9% above its August 11 closing price of $82.30

* The stock recently traded at 126 times the next 12-month earnings vs. a P/E of 157 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)