Aug 22, 2024 - Economy
Charted: Cava'ing out a niche
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Cava today hiked its same-store sales growth projection for this fiscal year from 4.5%–6.5% to 8.5%–9.5%.
- The Mediterranean restaurant chain also reported revenue of $231.4 million in the period that ended July 14, up 35% from a year earlier and beating S&P Capital IQ's expectation of $219.5 million.
The company's shares, which have risen by more than 167% since its IPO last summer, are popping over 6% after the bell.
Between the lines: Cava sales growth is accelerating as the fast-casual chain reels in customers who are fleeing fast food and casual sit-down dining.
- "We're seeing trade up from" fast food, Cava CEO Brett 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."
