CAVA Group Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-25
CAVA Group, Inc. Reports Second Quarter 2024 Financial Results
CAVA Group, Inc. (NYSE:CAVA), the Mediterranean fast-casual restaurant brand, announced its financial results for the fiscal second quarter ended July 14, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Revenue | $231.4M | $171.1M | +35.2% | $219.5M |
| EPS | N/A | N/A | N/A | $0.12 |
| Net Income | $19.7M | $6.5M | +203% | N/A |
| Adjusted EBITDA | $34.3M | $21.6M | +59.0% | N/A |
Interpretation: CAVA Group reported robust financial performance this quarter, with a significant 35.2% increase in revenue compared to the same period last year, surpassing Wall Street's consensus estimate of $219.5 million. The company's net income soared to $19.7 million from $6.5 million, highlighting the brand's operational efficiency and growing market presence.
Revenue Performance by Segment
| Segment | Revenue Q2 2024 | Revenue Growth | Previous Guidance |
|---|---|---|---|
| CAVA Restaurants | $231.4M | +35.2% | N/A |
Interpretation: The revenue growth was primarily driven by the addition of 78 net new CAVA restaurant openings from the fiscal second quarter of 2023, coupled with a 14.4% same restaurant sales growth. Traffic increased by 9.5%, boosted by the successful introduction of the new grilled steak menu item.
Operational Data
| Operational Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Net New Restaurant Openings | 18 | N/A | N/A |
| Total Restaurants | 341 | 279 | +22.2% |
| Traffic Growth | 9.5% | N/A | N/A |
| Digital Revenue Mix | 35.8% | N/A | N/A |
| Average Unit Volume (AUV) | $2.7M | $2.6M | +3.8% |
| Restaurant-Level Profit Margin | 26.5% | 26.1% | +40 bps |
Interpretation: Operational efficiencies are evident, with the company opening 18 net new restaurants in the quarter, bringing the total count to 341. The increase in average unit volume and a healthy restaurant-level profit margin of 26.5% underscore the strong operational and financial performance.
Comments from Company Officers
Brett Schulman, Co-Founder and CEO, expressed optimism about the brand's momentum. "Our results in the second quarter continued to demonstrate the strength of our category-defining brand and our unique and compelling value proposition. Grilled steak is significantly outperforming our expectations and giving guests another reason to visit CAVA and come back more often."
Dividends or Share Repurchase Program
There was no mention of any announced dividends or share repurchase program.
Forward Guidance
CAVA Group has raised its fiscal full-year 2024 guidance, though specific figures were not disclosed in the release. This positive outlook highlights expectations for continued growth.
Stock Price Movement
Following the earnings release, CAVA Group's stock experienced a minor decline of 0.87%.
In summary, CAVA Group posted a strong second quarter with notable revenue and net income growth, driven by new restaurant openings and increased same-restaurant sales. The company remains optimistic about its fiscal year 2024 outlook, backed by ongoing operational and financial momentum.
