Cava Stock Surges To All-Time High on Strong Earnings, Sales Outlook | Global News Avenue

KaVo Group shares (kavaShares of the Mediterranean fast-casual chain rose 17% on Wednesday, a day after the Mediterranean fast-casual chain reported third-quarter results that beat expectations and once again raised its fiscal 2024 same-store sales growth forecast.

Kawa reports net income $18 million income $241.5 million, both significantly higher than a year ago and higher than the consensus estimate of analysts at Visible Alpha.

Cava Same store sales It increased by 18% year-on-year, with customer traffic increasing by 13% and menu prices and product mix increasing by 5%.

Cava boosts same-store sales prospects again

The chain raised some funds full year forecastas it expects to open more stores than previously guided and expects same-store sales to rise 12% to 13%, up from 8.5% to 9.5% last quarter, while same-store sales themselves have risen to 6.5% from 4.5% previously. % range increased.

Cava also raised expectations for each restaurant profit margin and adjusted Earnings before interest, taxes, depreciation and amortization (EBITDA).

KaVo shares have rise repeatedly The following strong earnings because of its Initial Public Offering (IPO) last year. Their shares surged 17% to a record $170.25 on Wednesday, nearly quadrupling this year.

However, JPMorgan analysts reiterated their “neutral” rating on Wednesday, saying they believe “multiyears of growth” are already priced into the stock, although they raised their price target to $110 from $90.