Overview

* CAVA ( CAVA ) fiscal Q3 revenue grows 20% yr/yr nearly misses analyst expectations

* Company opened 17 net new restaurants, increasing total count by 17.9% yr/yr

* CAVA ( CAVA ) restaurant-level profit margin decreased to 24.6% due to higher operating costs

Outlook

* CAVA Group ( CAVA ) lowers full-year same restaurant sales growth forecast to 3.0%-4.0%

* Company revises full-year adjusted EBITDA guidance to $148.0-$152.0 mln

* CAVA Group ( CAVA ) expects full-year restaurant-level profit margin of 24.4%-24.8%

Result Drivers

* NEW RESTAURANT OPENINGS - Revenue growth driven by 74 net new restaurant openings exceeding expectations

* SAME RESTAURANT SALES - 1.9% growth driven by menu price and product mix, with flat guest traffic

* PROFIT MARGIN DECLINE - Decrease to 24.6% due to higher delivery, insurance, food, and wage costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $292.24 $292.58

Revenue mln mln (18

Analysts

)

Q3 EPS $0.12

Q3 Net $14.74

Income mln

Q3 $17.12

Income mln

from

Operatio

ns

Q3 $20.66

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 9 "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 $82.50, about 36.2% above its November 3 closing price of $52.61

* The stock recently traded at 82 times the next 12-month earnings vs. a P/E of 136 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)