CAVA Earnings Prediction
The chart below shows how CAVA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CAVA sees a +7.74% change in stock price 10 days leading up to the earnings, and a +6.38% change 10 days following the report. On the earnings day itself, the stock moves by -1.94%. This data can give you a slight idea of what to expect for the next quarter's release.
CAVA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
243.82M
38.89%
4.42%
Gross Margin
26.55%
-0.30%
-3.94%
Operating Margin
6.43%
122.49%
-11.92%
Net Margin
7.37%
89.46%
-12.78%
EPS
0.15
150.00%
-11.76%
No Data Available
CAVA Earnings Analysis
CAVA Group, Inc. Corporation (CAVA.N) Earnings Conference Call
Positive
Revenue Surge: 39% increase in CAVA revenue with a $2.8 million AUV.
Same-Restaurant Sales Growth: CAVA’s same-restaurant sales growth of 18.1%, including traffic growth of 12.9%.
Restaurant Expansion Growth: 11 net new restaurants opened, ending the quarter with 352 restaurants, a 21.4% increase year-over-year.
EBITDA Surge: Adjusted EBITDA of $33.5 million, a 69% increase over the third quarter of 2023.
Net Income Surge: Net income of $18 million, a 163% increase over the third quarter of 2023.
Negative
Rising Cost Impact: CAVA’s food, beverage and packaging costs were 29.9% of revenue, an increase of 50 basis points as compared to the third quarter of 2023, indicating rising costs impacting profitability.
Labor Cost Increase: CAVA labor and related costs were 25.4%, up 10 basis points from the third quarter of 2023, reflecting an 8% wage investment that was not offset by menu price increases, which could pressure margins.
Rising Overhead Costs: General and administrative expenses for the quarter, excluding stock-based compensation, were $26.3 million compared to $21.3 million in the third quarter of 2023, indicating rising overhead costs.
Profit Margin Outlook: CAVA expects restaurant-level profit margin between 24.5% to 25% for the full year 2024, suggesting a potential decline in profitability compared to previous performance.
Pre-Opening Cost Concerns: The company anticipates pre-opening costs between $12 million and $13 million, which could strain financial resources as they expand.
CAVA FAQs
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CAVA Earning Call Sentiment
CAVA Group, Inc. (CAVA) Q3 2024 Earnings Call Transcript
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CAVA.N
5.5%Positive
The earnings call highlighted strong financial performance, including a 39% revenue increase and 69% EBITDA growth, despite higher labor and food costs. The strategic initiatives, such as new restaurant openings and technological advancements, are promising. The Q&A section revealed positive sentiment from analysts, despite some concerns about labor costs and regulatory compliance. The optimistic guidance and strong cash position suggest a positive outlook, likely leading to a stock price increase in the 2% to 8% range over the next two weeks.
