CAVA Group Stock Surges 15% on Strong Q3 Earnings and Expansion Strategy
CAVA Group's stock soared 15% following a robust third-quarter earnings report that showcased 20% year-over-year revenue growth. The Mediterranean restaurant chain generated $292.24 million in revenue, narrowly surpassing analyst expectations of $291.95 million. Operational efficiency shone through with restaurant-level profit margins hitting 24.6%, while EBIT and gross margins stood at 5.8% and 30.5% respectively.
Seventeen new locations opened during the quarter demonstrate aggressive expansion despite macroeconomic headwinds. The launch of The CAVA Shop merchandise line signals brand extension ambitions. While EPS slightly missed forecasts, investors rewarded top-line outperformance and margin strength—a testament to CAVA's disciplined growth strategy in the competitive casual dining sector.
