CAVA Group shares jump after revenue, traffic beat forecasts

CAVA Group Inc. shares surged in after-hours trading on Tuesday after the fast-casual restaurant chain reported quarterly revenue and same-store traffic that exceeded analyst forecasts.

The company said revenue rose to $260.1 million in the latest quarter, up 35% year-over-year and surpassing the $245.3 million consensus estimate compiled by Refinitiv. Same-store sales increased 10.8% in the quarter, outpacing the 8.5% growth expected by analysts, while customer traffic climbed 8.1% compared with the same period last year.

CAVA attributed the strong performance to expanded store rollouts and sustained demand for its Mediterranean-inspired menu offerings. The company opened 25 new locations during the quarter, bringing its total footprint to 350 stores across the U.S. and Canada.

Shares of CAVA jumped more than 10% in extended trading following the results, extending gains from the regular session where the stock closed up 2.3% at $82.50. The company did not provide updated guidance for the full year in its earnings release.

Analysts at Piper Sandler maintained an overweight rating on CAVA, citing the company’s consistent execution and growth trajectory. The stock has gained approximately 45% year-to-date through Tuesday’s close, outperforming many peers in the restaurant sector.

Investors will monitor CAVA’s expansion plans and margin performance as it scales its operations, particularly amid broader concerns over consumer spending trends in the U.S.