CAVA Group, Inc. CAVA reported better-than-expected second-quarter financial results on Thursday. Cava Group reported quarterly earnings of 17 cents per share which beat the analyst consensus estimate of 12 cents by 41.67%. Quarterly sales clocked in at $233.495 million, beating the analyst consensus estimate by 7% and representing a 35.05% increase from the same period last year. "Our results in the second quarter continued to demonstrate the strength of our category-defining brand and our unique and compe ...

Tim Platt/DigitalVision via Getty Images Investment Thesis CAVA Group (NYSE:CAVA) achieves the impossible. CAVA impresses investors who already had incredibly high expectations, with a beat on the top and bottom and raising its guidance further. CAVA is a contention stock. Many investors, myself included, have questioned its very high valuation. Indeed, I believe that CAVA is priced at approximately 150x forward free cash flow. And yet, the stock continues to move higher. For my part, I can't make the math ...

LauriPatterson/E+ via Getty Images Investment Thesis CAVA Group (NYSE:CAVA) is quickly becoming one of the most followed stocks in the restaurant category, with results that are enviable by CAVA's peers in the fastcasual restaurant cohort. That envy among CAVA's peers might have reached new levels as the Washington, D.C.-headquartered Mediterranean chain of Mediterranean fast casual restaurants across the U.S. reported their Q2 results that blew past the tape. At the same time, CAVA's management raised thei ...

Cava Group (NYSE:CAVA) just reported results for the second quarter of 2024. Cava Group reported earnings per share of 17 cents. This was above the analyst estimate for EPS of 12 cents. The company reported revenue of $233.50 million. This was 6.83% better than the analyst estimate for revenue of $218.57 million. InvestorPlace Earnings is a project that leverages data from TradeSmith to automate coverage of quarterly earnings reports. InvestorPlace Earnings distills key takeaways including earnings per shar ...

CAVA Group, Inc. (NYSE:CAVA) Q2 2024 Earnings Conference Call August 22, 2024 5:00 PM ET Company Participants Matt Milanovich - Investor Relations Brett Schulman - Co-Founder and Chief Executive Officer Tricia Tolivar - Chief Financial Officer Conference Call Participants David Tarantino - Baird Brian Harbour - Morgan Stanley Andrew Charles - TD Cowen Chris O'Cull - Stifel Andy Barish - Jefferies Sharon Zackfia - William Blair Brian Mullan - Piper Sandler Jon Tower - Citi Rahul Krotthapalli - JPMorgan Jeffr ...

For the quarter ended June 2024, Cava Group (CAVA) reported revenue of $233.5 million, up 35.1% over the same period last year. EPS came in at $0.17, compared to $0.21 in the year-ago quarter. The reported revenue represents a surprise of +5.17% over the Zacks Consensus Estimate of $222.03 million. With the consensus EPS estimate being $0.13, the EPS surprise was +30.77%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine th ...

Thursday, August 22nd, 2024 Market indexes started the trading session in the green this morning, but steadily ran out of steam as the day wore on. Once afternoon lows had been established in the Dow and S&P 500, they leveled off through the close, while the Nasdaq and the small-cap Russell 2000 dwindled further. We've gotten back roughly to levels where we began the week. The Dow fell -177 points, -0.43% on the day, while the Nasdaq dropped -299 points, -1.67% — the lows for the session across major indexe ...

CAVA | --- | --- | --- | --- | |-------|--------------------------------|-------|-------| | | | | | | | | | | | | Q2 2024 EARNINGS SUPPLEMENTAL | | | | | MATERIALS | | | August 22, 2024 Cautionary Statement Regarding Forward -Looking Statements This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements ...

Cava Group (CAVA) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 30.77%. A quarter ago, it was expected that this Mediterranean restaurant chain would post earnings of $0.04 per share when it actually produced earnings of $0.12, delivering a surprise of 200%. Over the last four quar ...

Part I - Financial Information [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, highlighting significant year-over-year growth in revenue and net income driven by the CAVA segment Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 14, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $343,748 | $332,428 | | Total current assets | $369,766 | $354,912 | | Property and equipment, net | $355,014 | $330,730 | | Total assets | $1,038,542 | $983,757 | | Total current liabilities | $123,601 | $109,036 | | Total liabilities | $443,105 | $412,955 | | Total stockholders' equity | $595,437 | $570,802 | Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Twelve Weeks Ended July 14, 2024 | Twelve Weeks Ended July 9, 2023 | Twenty-Eight Weeks Ended July 14, 2024 | Twenty-Eight Weeks Ended July 9, 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $233,495 | $172,894 | $492,501 | $375,977 | | Income from operations | $16,144 | $5,762 | $25,397 | $3,510 | | Net income | $19,741 | $6,539 | $33,734 | $4,398 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Twenty-Eight Weeks Ended July 14, 2024 | Twenty-Eight Weeks Ended July 9, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $87,295 | $47,110 | | Net cash used in investing activities | ($59,882) | ($72,478) | | Net cash (used in) provided by financing activities | ($16,093) | $339,088 | - As of July 14, 2024, the company operated **341** fast-casual CAVA Restaurants. The company no longer operates any Zoes Kitchen locations as of March 2, 2023[18](index=18&type=chunk)[19](index=19&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, emphasizing CAVA segment growth, key metrics like same-restaurant sales, and the company's liquidity position [Key Performance Measures](index=18&type=section&id=2.1%20Key%20Performance%20Measures) The company tracks key performance measures including CAVA Same Restaurant Sales Growth and Adjusted EBITDA, both showing significant year-over-year increases Key Performance Measures Comparison (Twelve Weeks Ended) | Metric | July 14, 2024 | July 9, 2023 | Change | | :--- | :--- | :--- | :--- | | CAVA Revenue (in thousands) | $231,384 | $171,089 | $60,295 | | CAVA Same Restaurant Sales Growth | 14.4% | 18.2% | (3.8)% | | CAVA AUV (in thousands) | $2,689 | $2,599 | $90 | | CAVA Restaurant-Level Profit (in thousands) | $61,265 | $44,616 | $16,649 | | CAVA Restaurant-Level Profit Margin | 26.5% | 26.1% | 0.4% | | Adjusted EBITDA (in thousands) | $34,348 | $21,601 | $12,747 | | Adjusted EBITDA Margin | 14.7% | 12.5% | 2.2% | CAVA Restaurant Unit Data | Period | Beginning of Period | New Openings | Permanent Closures | End of Period | | :--- | :--- | :--- | :--- | :--- | | Twelve Weeks Ended July 14, 2024 | 323 | 18 | 0 | 341 | | Twenty-Eight Weeks Ended July 14, 2024 | 309 | 33 | (1) | 341 | [Results of Operations](index=19&type=section&id=2.2%20Results%20of%20Operations) This subsection details financial results, showing CAVA segment revenue growth driven by new openings and same-restaurant sales, and increased consolidated net income - For the twelve weeks ended July 14, 2024, CAVA Revenue increased by **$60.3 million (35.2%)**. This was driven by **$36.1 million** from **78** net new restaurants opened since Q2 2023 and **14.4%** Same Restaurant Sales Growth[62](index=62&type=chunk) - CAVA Same Restaurant Sales Growth of **14.4%** in Q2 2024 consisted of a **9.5%** increase from guest traffic and a **4.9%** increase from menu price and product mix[62](index=62&type=chunk) CAVA Segment Results (Twelve Weeks Ended) | (in thousands) | July 14, 2024 | % of Revenue | July 9, 2023 | % of Revenue | | :--- | :--- | :--- | :--- | :--- | | Revenue | $231,384 | 100.0% | $171,089 | 100.0% | | Restaurant-level profit | $61,265 | 26.5% | $44,616 | 26.1% | - For the twenty-eight weeks ended July 14, 2024, CAVA Revenue increased by **$119.8 million (32.6%)**, driven by **$86.8 million** from **104** net new restaurants and **7.8%** Same Restaurant Sales Growth[79](index=79&type=chunk) [Non-GAAP Financial Measures](index=27&type=section&id=2.3%20Non-GAAP%20Financial%20Measures) The company utilizes Adjusted EBITDA and Adjusted EBITDA Margin as key non-GAAP metrics, demonstrating significant year-over-year performance improvements Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Twelve Weeks Ended July 14, 2024 | Twelve Weeks Ended July 9, 2023 | Twenty-Eight Weeks Ended July 14, 2024 | Twenty-Eight Weeks Ended July 9, 2023 | | :--- | :--- | :--- | :--- | :--- | | Net income | $19,741 | $6,539 | $33,734 | $4,398 | | Adjusted EBITDA | $34,348 | $21,601 | $67,665 | $38,347 | | Net income margin | 8.5% | 3.8% | 6.8% | 1.2% | | Adjusted EBITDA Margin | 14.7% | 12.5% | 13.7% | 10.2% | [Liquidity and Capital Resources](index=28&type=section&id=2.4%20Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with substantial cash and cash equivalents, supported by increased operating cash flow to fund expansion - Cash and cash equivalents increased to **$343.7 million** as of July 14, 2024, from **$332.4 million** at the end of 2023[100](index=100&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | Twenty-Eight Weeks Ended July 14, 2024 | Twenty-Eight Weeks Ended July 9, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $87,295 | $47,110 | | Net cash used in investing activities | ($59,882) | ($72,478) | | Net cash (used in) provided by financing activities | ($16,093) | $339,088 | - The significant decrease in cash from financing activities is due to the **$336.1 million** in net proceeds from the IPO in the prior year period, which did not recur in 2024[19](index=19&type=chunk)[104](index=104&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include commodity prices, interest rates, and inflation, with no material changes reported since the 2023 Annual Report - The primary market risks faced by the company are commodity and food price risks, interest rate risk, and inflation[111](index=111&type=chunk) - There have been no material changes to the company's exposure to market risks as described in the 2023 Annual Report[111](index=111&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of July 14, 2024, with no material changes to internal control over financial reporting - Based on an evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of July 14, 2024[112](index=112&type=chunk) - There were no changes to internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[113](index=113&type=chunk) Part II - Other Information [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) This item details past lawsuits, including those related to PFAS allegations, all of which were settled and dismissed, with no material effect on financial condition expected - A lawsuit alleging PFAS in packaging (Hamman et al. v. Cava Group, Inc.) was settled and the action was dismissed with prejudice on April 15, 2024[40](index=40&type=chunk) - A similar lawsuit regarding false advertising claims related to PFAS (GMO Free USA v. Cava Group, Inc.) was also settled and dismissed with prejudice on April 16, 2024[41](index=41&type=chunk) - An associated insurance coverage dispute with Travelers Property Casualty Company was settled and dismissed with prejudice on April 17, 2024[42](index=42&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors as previously disclosed in its 2023 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the company's 2023 Annual Report[116](index=116&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company purchased its own equity securities solely to satisfy employee income tax withholding obligations upon the vesting of restricted stock units Issuer Purchases of Equity Securities (Twelve Weeks Ended July 14, 2024) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 22 - May 19, 2024 | 13,346 | $74.68 | | May 20 - June 16, 2024 | 93,231 | $88.92 | | June 17 - July 14, 2024 | 156 | $85.30 | | **Total** | **106,733** | **$87.14** | - Purchases were made to satisfy income tax withholding obligations for employees upon the vesting of restricted stock units[116](index=116&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted a Rule 10b5-1 trading arrangement during the twelve weeks ended July 14, 2024 - No directors or officers adopted a 'Rule 10b5-1 trading arrangement' during the quarter[119](index=119&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q report, including CEO and CFO certifications and XBRL data files for interactive reporting - Filed exhibits include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[121](index=121&type=chunk) - The filing includes Inline XBRL documents for interactive data reporting[121](index=121&type=chunk)