Cava, a cabaret restaurant in New York City, faced a disappointing second quarter, leading to a lowered full-year sales growth forecast for same-store sales, now projected between 4% to 6%, down from 6% to 8%. The company’s shares fell over 20% in after-hours trading, contributing to a 40% drop in stock value for the year.
In the second quarter, Cava reported earnings per share of 16 cents, slightly surpassing the 13 cents expected by analysts, but a decline from $19.7 million a year ago. Online sales increased by 20% to $278.2 million, aided by the opening of new locations. However, same-store sales only rose 2.1%, significantly below previous expectations.
CEO Brett Schulman credited the introduction of grilled steak options for initial customer interest, but overall quarterly traffic was nearly flat compared to a 14.4% increase during the same period last year. The company maintained other financial guidance, including adjusted revenue forecasts and profit margins.
Additionally, Cava participated in a $25 million funding round for Hyphens, a company automating plate and bowl splitting, aiming to enhance order efficiency.
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