Mediterranean fast-casual restaurant chain CAVA (NYSE: CAVA) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.
CAVA beat analysts’ revenue expectations last quarter, reporting revenues of $368.4 million, up 31.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ same-store sales and EBITDA estimates.
Is CAVA a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting CAVA’s revenue to grow 22.8% year on year, improving from the 19.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. CAVA rarely misses Wall Street’s revenue estimates.
Looking at CAVA’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Chipotle delivered year-on-year revenue growth of 9.6%, meeting analysts’ expectations, and Wingstop reported revenues up 5.3%, falling short of estimates by 4%. Chipotle traded up 8.9% following the results while Wingstop was also up 17.7%.
Read our full analysis of Chipotle’s results here and Wingstop’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 15% on average over the last month. CAVA is up 14.6% during the same time and is heading into earnings with an average analyst price target of $81.25 (compared to the current share price of $62.02).
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