Key facts
- Cava Group surpassed Q2 sales and profit expectations.
- Same-restaurant sales increased by 9%, exceeding analyst estimates.
- Quarterly revenue reached $365.4 million, surpassing expectations.
- Adjusted EBITDA was $54.7 million, also above analyst estimates.
- The company maintained its annual forecasts due to economic uncertainty and food safety concerns.
Cava Group exceeded Wall Street's second-quarter sales and profit expectations, benefiting from demand for its affordable Mediterranean cuisine. The company reported a 9% increase in same-restaurant sales and revenue of $365.4 million, surpassing analyst estimates. Adjusted EBITDA also rose 30% to $54.7 million.
Despite the strong quarterly performance, Cava maintained its annual forecasts unchanged. CEO Brett Schulman cited concerns over recent food safety outbreaks, including a multistate cyclosporiasis outbreak that impacted sales, and broader macroeconomic and geopolitical uncertainties as reasons for the cautious outlook. The company noted it was not affected by a separate salmonella outbreak.
Cava's results come as other major fast-food chains face challenges attracting price-sensitive customers. The company has also introduced new menu items, such as harissa barbecue pita chips and pomegranate-glazed salmon, to attract diners.