"Revenue increased 20% to $289.8 million. However, the company its full-year sales growth guidance, reporting flat foot traffic and a 1.9% increase in comparable sales-short of Wall Street expectations for 2.7%. Cava's reduction in expectations for the rest of the year factors in a very uncertain consumer economic dynamic, CFO Tricia Tolivar told me. Amid a government shutdown, consumers are feeling more pressure."
"Cava has been very measured on price increases, Tolivar said. Since the end of 2019, Cava has increased menu prices by roughly 15%-a rate below both inflation (about 23%) and typical menu increases across quick-service restaurants (about 30%+). The company raised menu prices by only 1.7% in January and does not anticipate significant increases next year. "There's pressure on costs for us, but we don't think in today's environment it is appropriate to pass that all on to the consumer," Tolivar added."
Cava reported Q3 revenue rose 20% to $289.8 million, with comparable sales up 1.9% and flat foot traffic, falling short of Wall Street's 2.7% expectation. Full-year sales growth guidance was reduced due to uncertain consumer economic dynamics and pressure linked to a government shutdown. Menu prices have risen roughly 15% since 2019, below inflation and quick-service peers, with only a 1.7% increase in January and no significant increases anticipated next year. The company emphasizes measured pricing, cost pressures without full pass-through to consumers, continued market-share gains, expansion, and building its leadership pipeline, with revenue rising from about $564 million in 2022 to $954 million in 2024.
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