Customers arrive in a Cava restaurant in New York on June 22, 2023.
Brendan McDermid | Reuters
How are you Tuesday, reduced its annual forecasts for sales growth at comparable stores after a second disappointing quarter.
For the whole year, Cava now forecasts sales growth at comparable stores from 4% to 6%, down compared to its previous range from 6% to 8%.
The actions of the company have plunged more than 20% of prolonged exchanges. The stock dropped by 40% this year, including the move after working hours.
Here is what the company declared in relation to what Wall Street was expecting, on the basis of a survey of LSEG analysts:
- Profit by action: 16 cents against 13 hundred expected
- Income: $ 280.6 million against $ 285.6 million expected
The catering company declared a net profit in the second quarter of $ 18.4 million, or 16 cents per share, compared to $ 19.7 million, or 17 cents per share, a year earlier.
Net restaurant sales has climbed 20% to $ 278.2 million, largely thanks to the new restaurant openings.
Sales with comparable stores of the chain, a metric that only follows the performance of restaurants open at least one year, increased by 2.1% during the quarter. While Cava has managed to reverse the trend in the comparable store sales industry, Wall Street predicted growth of 6.1%, according to Streetaccount estimates.
Cava said his quarterly traffic was “almost flat”. A year earlier, comparable store sales increased by 14.4%, fueled by traffic growth in almost figures. At the time, the CEO and co-founder of Cava, Brett Schulman, credited the introduction of its grilled steak option as one of the reasons why customers continued to come in restaurants during the quarter.
Financial director Tricia Tolivar told CNBC on Tuesday that the second quarter had started with strong growth in comparable stores, which led the company to reiterate its previous prospects when it published its results in the first quarter. However, she said, once the chain celebrated the launch of one year of Grild Steak, it saw this slow growth.
The rapid rival chains also had a hard time in this quarter with falling sales. Mexican grill chipotle Comparable store sales drops said 4%, while the salad chain Sweetgreen I saw its stock drop after the company reduced its prospects for the second consecutive quarter.
In addition to reducing its sales forecasts with comparable stores, Cava has reiterated other key financial projections for the full year. The company still provides adjusted profits before interest, taxes, damping and damping from $ 152 million to $ 159 million. Cava also maintained its forecasts for beneficiary margins at the restaurant level from 24.8% to 25.2%.
Cava also announced Tuesday that it had participated in a funding cycle of $ 25 million for Hyphen, which automates the plates and the portion of bowl. Mexican grill chipotleWho has already invested in Hyphen, led the financing tour with Cava.
“By driving the Hypheal automated digital make -line, we have the possibility of increasing the accuracy and speed of commands during advanced digital hours, while reducing complexity for members of our team,” Schulman said in a press release.