Cava Group's Revenue Miss, EPS Beat-Shares Plunge On Softer Same-Store Sales Growth Expectations

Benzinga

Cava Group reported second-quarter revenue of $278.25 million, missing estimates of $286.58 million, according to Benzinga Pro. Adjusted earnings of 16 cents per share topped forecasts of 14 cents.  Revenue rose 20.3% year-over-year on same-restaurant sales growth of 2.1%, driven by menu pricing and product mix, as guest traffic remained flat. The company opened 16 new locations in the quarter, bringing its total to 398, and ended the period with $290.17 million in cash. Cava now expects full-year same-restaurant sales growth of 4% to 6%, down from 6% to 8%, but raised its restaurant opening target to 68 to 70 this year from 64 to 68. Full-year adjusted EBITDA is still projected at $152 million to $159 million. Shares fell 22.45% in after-hours trading on Tuesday.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Kava Group reported second quarter revenue of $278.25 million,

00:06missing estimates of $286.58 million, according to Benzinga Pro.

00:10Customer earnings of $0.16 per share, top forecast of $0.14.

00:14Revenue rose 20.3% year-over-year on same restaurant sales growth of 2.1%,

00:19through by menu pricing and product mix, as guest traffic remained flat.

00:23The company owned 16 new locations in the quarter, bringing its total of $398,

00:26into the period with $290.17 million in cash.

00:30Kava now expects full-year same restaurant sales growth of 4% to 6%,

00:33down from 6% to 8%, and raised its restaurant opening target to 68% to 70% this year,

00:39from 64% to 68%.

00:41Full-year adjusted EBITDA is still projected at $152 million to $159 million.

00:45Shares fell 22.45% in after-hours trading on Tuesday.

00:48For all things money, visit Benzinga.com.

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