The stock of Cava Group (CAVA) is up 9% after the restaurant chain specializing in Mediterranean cuisine posted better-than-expected financial results.
The company reported fourth quarter 2023 earnings per share (EPS) of $0.02 U.S., which was double the $0.01 U.S. expected among analysts who cover the company.
Revenue in the quarter totaled $177.2 million U.S., beating forecasts that had called for sales of $175.2 million U.S. The company’s sales rose 52.5% year-over-year.
For all of last year, Cava reported a profit of $13.3 million U.S., or $0.21 U.S. per share, and sales of $728.7 million U.S.
The company opened 72 new restaurant locations during 2023.
In terms of guidance, Cava plans to open 52 new restaurants in 2024 and is forecasting same-store sales growth of 3% to 5% over the course of the year.
The company also forecast a 2024 profit margin of 22.7% to 23.3%.
The stock of Cava has risen 32% since the company held its initial public offering (IPO) in June 2023 and, prior to Feb. 27, was trading at $50.50 U.S. per share.
