Fast-casual restaurant chain Cava, which specializes in Mediterranean cuisine, comfortably beat the expectations of analysts with its fiscal second-quarter earnings. The company’s stock surged by 19% on Friday to a record close.
Cava reported $233.5 million in revenue for Q2, which is a 35.2% year-over-year increase compared to the $219.5 million estimated by analysts. Its adjusted earnings per share came at $0.17 versus $0.13 expected.
The company also saw same-store sales growth of 14.4% for the past quarter, boosted by increased in-store traffic, new locations, and updated prices. Analysts, on the other hand, predicted 7.45%.
After a successful second quarter, Cava now forecasts 8.5% to 9.5% in full-year sales growth compared to previously predicted 4.5% to 6.5% growth. It also added several new locations to its plans, planning to open between 54 and 57 new restaurants versus previous plans of 50 to 54 new locations.
“In the second quarter, we once again delivered exceptional results, demonstrating the strength of our category-defining brand, our clear leadership position in the Mediterranean, our powerful unit economic engine, and the return on investments we continue to make in our business and our people, “CEO Brett Schulman said on post-earnings call.
Cava’s stock reached its all-time high on Friday, climbing to $124.26 per share at one point. It lost a bit of its momentum towards the end of the day to close at $122.00. The company’s shares are now 198.51% up year-to-date.