Cava crushes Q4 earnings estimates, but stock gets crunched on lower sales forecast
Cava’s revenue was sweet, but its prediction for lower same-store sales soured investors.
Cava topped Wall Street’s Q4 earnings estimates, but it wasn’t enough to satisfy investors’ appetites. Quarterly revenue for the fast-casual Mediterranean chain came in at $225.1 million, well above Wall Street’s forecast of $193.41 million. Earnings per share also soared above expectations, coming in at $0.05 versus an expected loss of $0.01. Meanwhile, Cava’s net income nearly tripled in 2024, reaching $50.2 million.
Cava expanded its footprint over the past year, adding 58 net new restaurants and bringing its total to 367. However, the stock initially plummeted as much as 7.6% in after-hours trading after the company forecast same-restaurant sales growth of 6% to 8% for full-year 2025, significantly lower than the 13% growth it achieved last year. As of writing, investors seem to have had time to digest the full scope of the report, and the shares have recovered to roughly 3% down.
Despite the stock dip, shares have nearly doubled over the past year.
