Image Source: Pexels
Cava Group Inc (NYSE: CAVA) is trading down in extended hours on Tuesday even though it reported market-beating financial results for its first quarter.
Why is CAVA stock down in after-hours?
The price action is interesting considering the management raised its guidance as well. $CAVA now forecasts up to $105 million of adjusted EBITDA on 4.5% to 6.5% of same-restaurant sales growth in fiscal 2024.The New York listed firm expects to open up to 54 new restaurants in total this year. Brett Schulman – the chief executive of Cava Group said in a press release today:
As we continue to invest in scalable infrastructure to support our growth, we are in a strong position to capture the significant whitespace opportunity ahead of us.
The Mediterranean food chain opened 14 net new restaurants in its recently concluded quarter. Cava stock has roughly doubled year-to-date.
CAVA Q1 earnings snapshot
Cava Group improved its profit margin by 280 basis points (sequentially) to 25.2% in Q1. CEO Schulman also said on Tuesday:
CAVA’s results in the first quarter demonstrate the strength of our category-defining brand, our clear leadership position in Mediterranean and our compelling differentiated value proposition.
Wall Street currently has a consensus “overweight” rating on CAVA stock.More By This Author:Is It Time To Sell Starbucks Stock As It Enters Price War In China?
The Next Big Wave Of AI Could Be In Healthcare
Boeing Announces New Contract With Air Force
