A banner of Mediterranean restaurant chain Cava is displayed outside the New York Stock Exchange (NYSE) as the company is going public on June 15, 2023 in New York City.
Spencer Platt | Getty Images
To move a horse around in a circle posted a profitable quarter on Tuesday for its first earnings report since its initial public offering in June.
Kava stock soared as much as 12% in extended trading. Shares have more than doubled in value since the IPO, largely due to its blockbuster public. market debut,
The Mediterranean Restaurant Company has a market value of $5.27 billion as of Tuesday’s end.
Here’s what the company has reported for it Quarter ended July 9,
- Earnings per share: 21 cents
- Revenue: $172.9 million versus $163 million
Kava reported net income of $6.5 million, or 21 cents per share, in the second quarter, narrowing from a net loss of $8.2 million, or $6.23 per share, a year earlier.
CNBC does not compare reported earnings per share to Wall Street’s estimates for the company’s first report as a public company, as the uncertain share count may overshadow expectations.
gross sales New restaurant openings increased 62% to $172.9 million. The chain said it opened a total of 279 new Cava restaurants during the period.
Kava’s same-store sales rose 18.2% in the quarter. The chain said its traffic increased 10.3%, making it a leader in the broader restaurant industry, which has seen a decline in customer visits in recent months. CFO Tricia Tolliver attributed some of the chain’s strong traffic to increased brand awareness following the company’s IPO.
However, Tolliver also noted that same-store sales growth has slowed in recent weeks. More diners are also moving away from delivery ordering to bringing their own hot bowls and salads, indicating that Cava’s customer base is recouping its restaurant spending.
rival sweet green reported a similar trend. Delivery orders are costlier due to additional charges.
Cava’s menu prices were about 8% higher than in the year-ago period, although executives said the restaurant chain has no plans to raise prices further.
More than a third of Kava’s quarterly sales came from digital orders this quarter.
Looking to 2023, Kava expects to report same-store sales growth of between 13% and 15% for the full year. CEO Brett Schulman cited macroeconomic pressures such as rising interest rates and gas prices as the primary reason for the cautious sales forecast.
The company plans to open 65 to 70 new locations. It is also forecasting adjusted earnings before interest, taxes, depreciation and amortization of $62 million to $67 million.