CAVA Group Reports First Quarter 2024 Results

29 Mei

CAVA Group, Inc., (CAVA) a Mediterranean fast-casual restaurant brand, has reported its first quarter 2024 financial results. The company's revenue growth of 30.3%, including the same restaurant sales growth of 2.3%, was driven by its highly portable Mediterranean concept and powerful unit economic engine. The company opened 14 new restaurants during the quarter, and as it continues to invest in scalable infrastructure, it is in a strong position to capture the significant whitespace opportunity ahead.

The company's revenue increased by 30.3% to $256.3 million, compared to $196.8 million in the prior year quarter. The company also saw a 22.8% increase in total CAVA Restaurants year over year, with 86 new CAVA Restaurant Openings. The same restaurant sales growth was also strong, with a 2.3% increase from menu price and product mix.

CAVA's Adjusted EBITDA(1) was $33.3 million, compared to $16.7 million in the prior year quarter. The company's net income was $14.0 million, compared to a net loss of $2.1 million in the previous quarter. The adjusted EBITDA(1) was $33.3 million, or 12.9% of revenue, an increase of 99.0% compared to the first quarter of fiscal 2023.

The company's Restaurant-Level Profit Margin was 25.2%, compared to 25.4% in the first quarter of fiscal 2023. This decrease was due to incremental wage investments and lower food, beverage, and packaging costs as a percentage of revenue.

General and administrative expenses were $33.8 million, or 13.1% of revenue, compared to $29.0 million, or 14.3% of revenue, in the first quarter of fiscal 2023. The decrease was primarily due to higher performance-based incentive compensation in the prior year quarter and leverage from higher sales, partially offset by investments in the Collaboration Center Organization to support growth and recurring public company costs.

Net income was $14.0 million, or 5.4% of revenue, an increase of $16.1 million compared to a net loss of $2.1 million in the first quarter of fiscal 2023. The adjusted EBITDA(1) was $33.3 million, or 12.9% of revenue, an increase of $16.6 million, or 99.0%, compared to the first quarter of fiscal 2023.

Technical Outlook
CAVA Group stock (CAVA) is down 2.82% in Tuesday's pre-market trading. The stock closed Tuesday's market trading with a Relative Strength Index (RSI) of 66.59 which was quiet overbought.