Cava's Profit Soars, Justifying High Valuation and Projected Growth
Mediterranean restaurant chain Cava, which recently went public, has reported a profitable quarter in its first earnings report since its IPO. The company's stock surged 12% in extended trading and has more than doubled in value since its initial public offering. Cava's second-quarter net income swung from a loss to a profit, with net sales soaring 62% fueled by new restaurant openings. The chain's same-store sales climbed 18.2% and its digital orders accounted for over a third of quarterly sales. Cava expects to continue its growth with plans to open 65 to 70 new locations and forecasts strong earnings for 2023.