CAVA Group reported first-quarter results that topped analyst expectations and raised its full-year guidance, driven by strong guest traffic growth at its Mediterranean fast-casual restaurants.
First-quarter revenue of $438.3 million represented a 32.2% year-over-year increase and cleared the analyst consensus of $418.5 million, according to The Wall Street Journal
Of the 9.7% same-restaurant sales gain, 6.8 percentage points came from increased guest traffic while the remaining 2.9 percentage points reflected menu price and product mix. Earnings were $23.6 million, down from $25.7 million a year earlier. Earnings per share fell to $0.20 from $0.22 on a diluted basis.
The company said a smaller tax benefit from equity-based compensation raised the effective tax rate, and higher depreciation and amortization also affected profits. Analysts had expected $0.17 per share, according to The Wall Street Journal. Adjusted EBITDA rose 37.6% to $61.7 million, according to the company.