Cava Group, Inc. (NYSE: CAVA) has reported significant growth in its second quarter 2024 results. The company's revenue increased by 35.2% year over year, reaching $231.4 million compared to $171.1 million in the prior year quarter. This growth was driven by several factors, including a 14.4% increase in same restaurant sales and a 9.5% rise in guest traffic.
Additionally, Cava Group experienced an expansion in its restaurant network, with 18 net new restaurant openings during the quarter, bringing the total number of Cava restaurants to 341, marking a 22.2% increase from the previous year. The company's average unit volume (AUV) also saw an uptick, reaching $2.7 million compared to $2.6 million in the prior year quarter.
The restaurant-level profit margin for the second quarter of 2024 was reported at 26.5%, indicating a slight improvement from 26.1% in the same period of fiscal 2023. The company's net income surged to $19.7 million, a substantial increase from $6.5 million in the prior year quarter, while adjusted EBITDA reached $34.3 million, up from $21.6 million in the prior year quarter.
Cava Group's digital revenue mix also showed a strong performance, standing at 35.8% for the second quarter of 2024. In terms of operating activities, the company generated net cash of $48.9 million and free cash flow of $22.7 million.
Looking ahead, Cava Group raised its fiscal full-year 2024 guidance, anticipating further growth in net new restaurant openings, same restaurant sales, restaurant-level profit margin, and adjusted EBITDA. The updated guidance reflects the company's confidence in its continued expansion and financial performance for the remainder of the fiscal year.
Today the company's shares have moved 20.0% to a price of $122.4. If you want to know more, read the company's complete 8-K report here.
