Q2 2024 CAVA Group Inc Earnings Call Transcript
Key Points
- Cava Group Inc (CAVA) reported a 35.2% increase in revenue for Q2 2024, reaching $231.4 million.
- The company saw a 14.4% growth in same-restaurant sales, driven by a 9.5% increase in guest traffic.
- Cava Group Inc (CAVA) opened 18 net new restaurants in Q2, bringing the total to 341, a 22.2% increase year-over-year.
- The launch of grilled steak surpassed expectations, contributing significantly to sales and customer visits.
- The company generated $22.7 million in free cash flow during the quarter and reported a net income of $19.7 million, exceeding the total net income for all of 2023.
- Cava Group Inc (CAVA) anticipates an increase in food, beverage, and packaging costs for the rest of the year due to the steak launch.
- Labor and related costs increased by 40 basis points year-over-year, reflecting a 9% wage investment.
- General and administrative expenses rose to $24.7 million, driven by investments to support growth and recurring public company costs.
- The company is cautious about the uncertain macroeconomic environment and upcoming election, which could impact future performance.
- Despite strong performance, the company did not factor in any incremental benefits from the upcoming loyalty program into their guidance for the rest of the year.
Good afternoon, ladies and gentlemen, and welcome to the CAVA second-quarter 2024 earnings conference call. (Operator Instructions) This call is being recorded on Thursday, August 22, 2024.
I would now like to turn the conference over to Matt Milanovich. Please go ahead.
Good afternoon, and welcome to CAVA's second-quarter 2024 financial results conference call. Before we begin, if you do not already have a copy, the earnings release and related 8-K furnished with the SEC are available on our website at investor.cava.com.
The purpose of this conference call is to give investors further details regarding the company's financial results as well as a general update on the company's progress. You will find reconciliations of any non-GAAP financial measure discussed on today's call to the most directly comparable financial measure calculated in accordance with GAAP, to the extent available without unreasonable efforts, in today's earnings release and supplemental deck, each of which is posted on
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