Mediterranean fast-casual restaurant chain CAVA (NYSE: CAVA) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.
CAVA beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $227.4 million, up 28.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS and same-store sales estimates.
Is CAVA a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting CAVA’s revenue to grow 26.5% year on year to $327.7 million, slowing from the 27.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CAVA has missed Wall Street’s revenue estimates twice over the last two years.
Looking at CAVA’s peers in the modern fast food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Potbelly delivered year-on-year revenue growth of 2.3%, beating analysts’ expectations by 1.7%, and Wingstop reported revenues up 17.4%, in line with consensus estimates. Potbelly traded up 18.3% following the results while Wingstop was also up 12.7%.
Read our full analysis of Potbelly’s results here and Wingstop’s results here.
There has been positive sentiment among investors in the modern fast food segment, with share prices up 12.7% on average over the last month. CAVA is up 13.4% during the same time and is heading into earnings with an average analyst price target of $114.30 (compared to the current share price of $100.20).
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