Mediterranean restaurant chain Cava (CAVA) has reported a profit in its first earnings report since holding an initial public offering (IPO) in June of this year.
News of the profit sent Cava stock up 12% in premarket trading. Shares have more than doubled in value since the IPO was priced, bringing the company’s market valuation to $5.27 billion U.S.
Cava announced second-quarter net income, or profit, of $6.5 million U.S., or $0.21 U.S. per share, rising from a net loss of $8.2 million U.S., or $6.23 U.S. a share, a year earlier.
Revenue in the quarter totaled $172.9 million U.S., up 6% from $163 million U.S. a year ago.
The company said it opened 16 new Cava restaurants during the period, bringing its total to 279 locations.
Same-store sales increased 18.2% in Q2, while traffic at its locations grew 10.3%.
Cava’s menu prices were up nearly 8% compared with a year earlier, though executives said the restaurant chain has no plans to raise prices any further.
More than a third of Cava’s quarterly sales came from digital orders in Q2, the company said.
Looking ahead, Cava said it expects to report same-store sales growth for the full year of between 13% and 15%.
The restaurant chain added that it plans to open between 65 and 70 new locations this year and is forecasting earnings of $62 million U.S. to $67 million U.S.
Cava’s stock has increased 22% since its June market debut and currently trades at $46.39 U.S. per share.
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