Cava sales jump as fast-food diners flee price increases

• "We're seeing trade up from" fast food, Schulman tells Axios in an interview. "We're seeing trade down from full service and trading over from legacy fast casual, given our value proposition."

The impact: Cava today hiked its 2024 fiscal year same-store sales growth projection from 4.5—6.5% to 8.5—9.5%.

• The company also reported revenue of $231.4 million in the period ended July 14, up 35% from a year earlier and beating S&P Capital IQ's expectation of $219.5 million.
• Net income of $19.7 million also topped S&P expectations of $15 million.

Cava shares popped over 5% in after-hours trading.

A big factor for the chain's success in the second quarter was the introduction of grilled steak.

• "It really surpassed our expectations," Schulman says.

What's next: Cava plans to open 54—57 new locations in the fiscal year, up from a previous plan of 50—54.

• Schulman said the company is particularly targeting the upper Midwest after recently opening its first location there in Chicago.