A banner for Mediterranean restaurant chain Cava is displayed outside the New York Stock Exchange (NYSE) as the company goes public on June 15, 2023 in New York City.
Spencer Platt | fake images
Cava shares rose as much as 15% on Tuesday after the Mediterranean restaurant chain released its earnings report a day earlier.
Investors expected Cava to announce its earnings after the bell Tuesday afternoon, but the company issued its press release Monday evening after early versions of the results appeared in the news shortly after the market closed. .
Cava shares closed Tuesday up 12%.
The company reported fourth-quarter net income of $2.05 million, or 2 cents per share, compared with a net loss of $18.85 million, or $13.72 per share, a year earlier. Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, expected the company to break even during the quarter.
The chain's revenue soared 36% to $177.1 million, beating analyst expectations of $174 million. Cava's comparable sales rose 11.4%, beating expectations for 5.9% growth, according to StreetAccount estimates.
By 2024, Cava plans to open between 48 and 52 new locations, adding to its presence of 309 restaurants, as of December 31. The company forecasts same-store sales growth of 3% to 5% and adjusted earnings before interest. taxes, depreciation and amortization from $86 million to $92 million.
Cava shares have soared 158% since its initial public offering in June. Including Tuesday's stock movement, the restaurant chain has a market value of $6.44 billion.
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