Key Takeaways

• Shares of fast-casual Mediterranean chain Cava Group surged Wednesday, a day after its third-quarter results beat analysts' estimates.

• Revenue, profit, and same-store sales growth increased from a year ago.

• Cava again lifted its fiscal 2024 same-store sales growth outlook.

Shares of Cava Group (CAVA) jumped 17% Wednesday, a day after the fast-casual Mediterranean chain reported third-quarter results above expectation and again lifted its fiscal 2024 same-store sales growth outlook.

Cava reported net income of $18 million on revenue of $241.5 million, both significantly higher than a year ago and above consensus estimates of analysts compiled by Visible Alpha.

Cava's same-store sales rose by 18% year-over-year, consisting of a 13% rise in traffic and 5% increase from menu prices and product mix.

Cava Again Lifts Same Store Sales Outlook

The chain raised some of its full-year projections, as it expects to open more stores than previously guided and sees same-store sales growing by 12% to 13%, up from 8.5% to 9.5% last quarter, which itself had been raised from the prior 4.5% to 6.5% range.

Cava also lifted its projected per-restaurant profit margin and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

Cava shares have risen repeatedly following strong earnings since its initial public offering (IPO) last year. They soared 17% to a record $170.25 on Wednesday and have nearly quadrupled this year.

However, JPMorgan analysts reiterated their "neutral" rating Wednesday, saying they believe "many years of growth" is already priced into the stock, although they raised their price target to $110 from $90.