CAVA Group, Inc. (NYSE:CAVA) shares are trading higher Wednesday after the company reported better-than-expected fourth-quarter financial results on Tuesday after the market closed.
Double Beat Backed By Expansion And Margin Gains
Cava reported adjusted earnings per share of 4 cents, beating the consensus estimate of 3 cents. In addition, the company reported revenue of $274.98 million, beating the consensus estimate of $267.92 million.
Total revenue increased 21.2% year over year, driven primarily by new restaurant openings. Same-restaurant sales rose 0.5%, reflecting gains from menu pricing and product mix that were partially offset by a 1.4% decline in guest traffic.
CAVA opened 24 new restaurants in the quarter, bringing total locations to 439, up 19.6% from the prior year.
Restaurant-level profit rose 15.7% to $58.3 million, with restaurant-level margin at 21.4%. Digital revenue represented 38.9% of total sales in the quarter.
The company ended the period with $282.92 million in cash and cash equivalents.
Consensus Ratings And Analyst Changes
The company has a consensus rating of Buy and a consensus price target of $91.36. Recent action include:
- TD Cowen analyst Andrew M. Charles maintained a Buy rating on Cava and raised the price target from $85 to $90.
Cava Shares Climb Higher
CAVA Price Action: At the time of writing, Cava shares are trading 14.01% higher at $77.30, according to data from Benzinga Pro.
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