$CAVA

🔹 Revenue: $331.8M (Est. $280.93M) 🟢; UP +28.2% YoY

🔹 Adj EPS: $0.22 (Est. $0.02) 🟢

FY25 Guidance:

🔹 Adjusted EBITDA: $152M–$159M (Raised from $150M–$157M) 🟢

🔹 Net New Restaurant Openings: 64–68 (Prev. 62–66)

🔹 Same Restaurant Sales Growth: 6.0%–8.0% (Reaffirmed)

🔹 Restaurant-Level Profit Margin: 24.8%–25.2% (Reaffirmed)

🔹 Pre-opening Costs: $14.5M–$15.5M (Prev. $14.0M–$15.0M)

Other Q1 Metrics:

🔹 Adj EBITDA: $44.9M (vs. $33.3M YoY); Margin: 13.5%

🔹 Free Cash Flow: $2.7M

🔹 Net Cash from Operating Activities: $38.6M

Operational Metrics:

🔹 CAVA Same Restaurant Sales Growth: +10.8%

  • Traffic Growth: +7.5%

  • Menu Price & Mix: +3.3%

🔹 Restaurant-Level Profit: $82.3M; UP +27.4% YoY

🔹 Restaurant-Level Profit Margin: 25.1% (vs. 25.2% YoY)

🔹 Digital Revenue Mix: 38.0%

🔹 Average Unit Volume (AUV): $2.9M (vs. $2.6M YoY)

Store Growth:

🔹 Net New Restaurant Openings: 15

🔹 Total Restaurants: 382 (UP +18.3% YoY)

🔸 Entered new market: Indiana — now in 26 states + DC

CEO Brett Schulman’s Commentary:

🔸 “In spite of economic uncertainty and challenging weather, CAVA’s first quarter results demonstrate the continued strength of our category-defining brand.”

🔸 “We’ve surpassed $1 billion in trailing-twelve-month revenue — a milestone that affirms Mediterranean as the next large-scale cultural cuisine category.”

Valuation is sky high...but it depends on your long-term perspective on this stock. Nevertheless, keep an eye on $CAVA

The opportunity for future growth is absolutely huge and since the company is so well-managed, I do not see any red flags that would serve as a barrier to continued growth at the moment.

They also operate with a healthy profit margin of 26.5%, which is a new high over the last year.

$CAVA Group Q3 '24 Earnings Highlights:

🔹 EPS: $0.15 (Est. $0.11) 🟢; UP from $0.06 YoY

🔹 Revenue: $243.8M (Est. $233.6M) 🟢; UP +39% YoY

🔹 Adj EBITDA: $34M (Est. $29M) 🟢; UP +69% YoY

Raised FY24 Outlook:

🔹 Adj EBITDA: $121M-$126M (Est. $117M) 🟢

🔹 Net New Restaurant Openings: 56-58 (Prev. 54-57)

🔹 Same Restaurant Sales Growth: 12.0%-13.0% (Prev. 8.5%-9.5%) 🟢

🔹 Restaurant-Level Profit Margin: 24.5%-25.0% (Prev. 24.2%-24.7%)

OTHER Q3 METRICS:

Restaurant Metrics

🔹 Same Restaurant Sales Growth: +18.1% YoY (Est. +12.4%) 🟢

🔹 Total Restaurants: 352; UP +21.4% YoY

🔹 Net New Restaurant Openings: 11 in Q3

🔹 Average Unit Volume (AUV): $2.8M

🔹 Guest Traffic Growth: +12.9% YoY

🔹 Digital Revenue Mix: 35.8%

Financial Details

🔹 Restaurant-Level Profit: $61.8M; UP +41.9% YoY

🔹 Restaurant-Level Profit Margin: 25.6% (Prev. 25.1% YoY)

🔹 Operating Cash Flow: $43.9M

🔹 Free Cash Flow: $23.4M

🔹 Cash & Cash Equivalents: $367.2M

Business Highlights

🔸 National launch of reimagined loyalty program completed

🔸 Rolled out new labor model ahead of schedule

🔸 Strong performance and growth from new restaurant openings

🔸 Consistent growth across all regions and channels

CEO Brett Schulman's Commentary

🔸 "Our Q3 results reflect the strength of our Mediterranean brand, as we establish Cava as the next major cultural cuisine category with a unique value proposition."

$CAVA

Doesn't matter if the price goes up just keep buying