Cava reported $434M in Q1 revenue, beating estimates, and raised its same-store sales growth outlook to 4.5-6.5%.
Cava’s stock rose after the fast-casual chain reported first-quarter revenue of $434 million, up 32% year-over-year and above the $418 million consensus estimate. Same-store sales grew 9.7%, driven by new customers, prompting the company to raise its full-year same-store sales growth forecast to 4.5-6.5% from 3-5%. Adjusted EBITDA is now projected to reach $191 million, up from $184 million.
Net income declined slightly to $23.6 million from $25.7 million a year earlier, attributed to higher equity-based compensation and depreciation costs. Earnings per share came in at $0.20, exceeding analyst expectations of $0.17 despite a year-over-year dip. The company also announced plans to open up to 77 new locations this fiscal year.
The results highlight improving unit economics in a challenging sector, as inflation and rising energy costs pressure consumer spending. Restaurant-level profit margins showed resilience, a rare bright spot in fast-casual dining.