CAVA Q2 revenue beats analyst expectations on traffic increase, restarurant openings
CAVA Q2 revenue beats analyst expectations on traffic increase, restarurant openings
Overview
US Mediterranean fast-casual chain's Q2 revenue rose 31%, beating analyst expectations
Same restaurant sales up 9.0%, driven by 5.3% guest traffic growth
Restaurant-level profit margin dipped due to higher input costs and delivery mix
Outlook
CAVA reaffirms 2026 outlook for 75 to 77 net new restaurant openings
Company expects 2026 same restaurant sales growth of 4.5% to 6.5%
CAVA sees 2026 adjusted EBITDA between $181.0 mln and $191.0 mln
Result Drivers
NEW RESTAURANT OPENINGS - Co said revenue growth was primarily driven by 94 net new restaurant openings during or subsequent to Q2 2025, which exceeded performance expectations
GUEST TRAFFIC - Same restaurant sales growth was driven by a 5.3% increase in guest traffic
MENU PRICE AND PRODUCT MIX - Co said menu price increases and product mix changes contributed 3.7% to same restaurant sales growth
Company press release: ID:nBw41dH2Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $368.44 mln | $360.53 mln (21 Analysts) |
Q2 EPS |
| $0.19 |
|
Q2 Net Income |
| $23.02 mln |
|
Q2 Income from Operations |
| $26.85 mln |
|
Q2 Pretax Profit |
| $30.58 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for CAVA Group, Inc. is $95.00, about 54.3% above its August 10 closing price of $61.58
The stock recently traded at 92 times the next 12-month earnings vs. a P/E of 159 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)