Cava: Rapid Growth but Some Concerns
Here's our initial take on Cava's (NYSE: CAVA) fiscal 2025 first-quarter financial report.
On the headline numbers, Cava's first-quarter earnings report looks great. The fast-casual restaurant brand reported revenue and earnings that both handily beat expectations. Revenue grew by 28% year over year, and even after backing out the effects of 15 net new stores, the company saw same-restaurant sales grow by nearly 11%, showing excellent momentum. Customer traffic grew by 7.5% during the quarter, so the increase wasn't just fueled by price inflation either.
The news wasn't all great. For example, Cava's restaurant-level profit margin declined by 10 basis points year over year to 25.1%, mainly due to higher food costs (specifically associated with the launch of grilled steak).
Source Fool.com
