Cava Stock Surges 12% as Newly Listed Restaurant Chain Reports Earnings
Key takeaways
- Wall Street darling Cava posted better-than-expected earnings and revenue for the second quarter
- The restaurant chain’s shares jumped as much as 12% at the news
- Cava’s showstopper IPO in June saw the company’s share price gain 117% in a day
Wall Street can’t get enough of Mediterranean restaurant chain Cava, who posted earnings and revenue figures above expectations this week. It was a solid first earnings report for Cava, which only went public in June in a blockbuster IPO. Here’s the latest.
Step into the vast field of food investments with Q.ai’s Food Fund Kit. Covering every corner, from cultivation to cuisine, it’s a delectable way to grow your assets. Plus, with our AI serving as your sous-chef on data analytics and automatically adjusting the assets it thinks could hit it big, you’re always in for a treat.
Download Q.ai today for access to AI-powered investment strategies.
What happened with Cava’s earnings beat?
Cava reported earnings per share of 21 cents per share based on revenue of $17.1 million, with beat forecasts of 2 cents per share loss based on revenue of $163.2 million.
As for its full-year guidance, investors were happy to see a forecast from the restaurant chain above expectations: Cava anticipates full-year earnings before EDITBA will be between $62 million and $67 million. Wall Street had predicted $56.8 million.
Cava opened 16 new restaurants in the quarter, with a total of 279 locations across the U.S. under its belt. The restaurant chain aims to have 1,000 restaurants opened by 2032.
How did Wall Street react?
Cava’s share price rallied as much as 12% during trading at the news. The restaurant chain has been a Wall Street darling since its IPO, surpassing expectations and potentially paving the way for more chains to go public.
The company first hit the markets in June, where its IPO was one of the standouts for 2023. The company sold 14.4 million shares at the debut, initially pricing the stock at $22 with a valuation of around $2.45 billion.
That was soon blown out of the water, with Cava shares soaring 117% during trading and raising close to $318 million. The shares finished the day at $43.78 a share, securing Cava’s position as the top-performing IPO this year for companies valued over $500 million.
The bottom line
Cava’s decent earnings beat is another feather in the restauranteur’s cap. The question is whether it can keep up the momentum, with the average consumer squeezed from every direction. Wall Street is undoubtedly betting it can, which could open up opportunities for similar restaurants to list on the markets.
From grains to gourmet, Q.ai’s Food Fund Kit offers a comprehensive snapshot of the food and agriculture sectors. Every asset within mirrors the vast expanse of the industry. Paired with our AI’s keen insights, which pour over data and forecast weekly stars, it helps build a portfolio that’s not only well-curated but also well-nurtured.
Download Q.ai today for access to AI-powered investment strategies.
