Cava earnings beat estimates as restaurant traffic climbs nearly 10%

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The Mediterranean restaurant chain Cava said its fiscal second-quarter traffic climbed 9.5%, bucking industry trends.

The Mediterranean restaurant chain said its fiscal second-quarter traffic climbed 9.5%, bucking industry trends.Shares of the company rose 7% in extended trading. The stock has more than doubled its value this year, bringing Cava's market cap up to about $11.6 billion, as of Thursday's close.

Cava opened 18 net new locations during the quarter, bringing its total footprint up to 341 restaurants. For fiscal 2024, Cava now expects same-store sales growth of 8.5% to 9.5%, up from its prior range of 4.5% to 6.5%. The company is also projecting that it will open 54 to 57 new locations this year, up from its previous forecast of 50 to 54 restaurants.

Cava also expects to report adjusted earnings before interest, taxes, depreciation and amortization of $109 million to $114 million. Previously, it was projecting adjusted EBITDA of $100 million to $105 million for the fiscal year.To fix Starbucks, incoming CEO Niccol will have to tackle its mobile app problem

 

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Cava earnings beat estimates as restaurant traffic climbs nearly 10%The Mediterranean restaurant chain Cava said its fiscal second-quarter traffic climbed 9.5%, bucking industry trends.
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