Latest news with #BrettSchulman
Yahoo
22-07-2025
- Business
- Yahoo
Cava makes its debut in Michigan
Cava Photo courtesy of Cava You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Cava has opened its first location in Michigan, in the Detroit suburb of Canton, as part of its broader plan to expand across the state. 'We're thrilled to join the Southeast Michigan community and introduce more guests to the bold, vibrant flavors of the Mediterranean,' regional leader Gino Carlin said in a statement. 'Entering the state of Michigan marks our 28th state, and we're eager to welcome more guests in the Midwest and throughout the country to our table to enjoy our Mediterranean cuisine and hospitality.' The Michigan entry comes on the heels of Cava's debut in Indiana in March and a successful debut in Chicago last year, which chief executive officer Brett Schulman called the company's most successful market opening to date. The company finished 2024 with 58 net new restaurants for 367 total and is projecting 64 to 68 new units in 2025, including in new markets Detroit and Pittsburgh. It's targeting 1,000 locations by 2032. Chief financial officer Tricia Tolivar recently told analysts that new restaurants are performing strongly. 'The cohort that opened in Q4 is performing at average weekly sales levels above 2023,' she said. 'We're still early in looking at these restaurants and understanding how they're going to behave, but we feel very confident in our ability to deliver $2.3 million (average unit volumes) in year one with 10% growth driving to $2.5 million and then 8% growth in the following years.' Cava's first quarter earnings included a 10.8% increase in same-store sales driven by 7.5% traffic growth. During its quarterly earnings call in May, Schulman said "we continued to demonstrate the strength of our category-defining brand, further cementing Mediterranean as the next major cultural cuisine category." Contact Alicia Kelso at
Yahoo
02-07-2025
- Business
- Yahoo
5 Revealing Analyst Questions From CAVA's Q1 Earnings Call
CAVA's first quarter results outpaced Wall Street expectations, but the market responded negatively, reflecting investor caution. Management attributed top-line growth to robust same-store sales, driven mainly by increased guest traffic and new restaurant openings, with CEO Brett Schulman describing the brand's value proposition as 'where taste and health unite.' Notably, investments in menu innovation and loyalty program enhancements contributed to higher guest engagement. However, management acknowledged that food cost pressures—particularly from steak offerings—and a challenging macroeconomic backdrop were headwinds that required disciplined execution and operational improvements. Is now the time to buy CAVA? Find out in our full research report (it's free). Revenue: $331.8 million vs analyst estimates of $327.7 million (28.1% year-on-year growth, 1.2% beat) EPS (GAAP): $0.22 vs analyst estimates of $0.13 (64.5% beat) Adjusted EBITDA: $44.85 million vs analyst estimates of $43.85 million (13.5% margin, 2.3% beat) EBITDA guidance for the full year is $155.5 million at the midpoint, below analyst estimates of $159.7 million Operating Margin: 4.7%, up from 3.6% in the same quarter last year Locations: 393 at quarter end, up from 334 in the same quarter last year Same-Store Sales rose 10.8% year on year (2.3% in the same quarter last year) Market Capitalization: $9.52 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Sharon Zackfia (William Blair) asked about the drivers of loyalty program engagement and the upcoming tiered structure. CEO Brett Schulman explained that lowering the entry reward hurdle and personalized offers contributed to higher participation, and detailed plans to further segment rewards by visit frequency. Danilo Gargiulo (Bernstein) inquired about throughput improvements from the Kitchen Display System rollout. Schulman stated that while specific numbers are not disclosed, KDS enhances order management and accuracy, and broader rollout is expected to deliver further gains. John Ivankoe (JPMorgan) questioned whether increased competition in existing markets was impacting performance. Schulman responded that CAVA has maintained strong average unit volumes across all regions, emphasizing that positive traffic growth is evidence of brand preference. Andy Barish (Jefferies) sought clarity on future menu innovation, asking if additional protein launches are planned. Schulman confirmed a major new protein introduction is likely later in the year, following the stage-gate product development process. Jeff Bernstein (Barclays) focused on restaurant margins and reinvestment priorities. CFO Tricia Tolivar explained that higher average unit volumes support strong margins, but the company is prioritizing reinvestment in team compensation and guest experience over aggressive price increases. In upcoming quarters, the StockStory team will closely monitor (1) the rollout and impact of new loyalty program features, including tiered rewards, (2) the pace and performance of new restaurant openings—especially in newly entered markets, and (3) margin management as food cost pressures evolve. We will also track the effectiveness of operational initiatives such as the Kitchen Display System and labor deployment model in driving productivity and guest satisfaction. CAVA currently trades at $82.50, down from $99.21 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
23-05-2025
- Business
- Yahoo
Q1 Earnings Outperformers: CAVA (NYSE:CAVA) And The Rest Of The Modern Fast Food Stocks
Let's dig into the relative performance of CAVA (NYSE:CAVA) and its peers as we unravel the now-completed Q1 modern fast food earnings season. Modern fast food is a relatively newer category representing a middle ground between traditional fast food and sit-down restaurants. These establishments feature an expanded menu selection priced above traditional fast food options, often incorporating fresher and cleaner ingredients to serve customers prioritizing quality. These eateries are capitalizing on the perception that your drive-through burger and fries joint is detrimental to your health because of inferior ingredients. The 7 modern fast food stocks we track reported a mixed Q1. As a group, revenues were in line with analysts' consensus estimates. Thankfully, share prices of the companies have been resilient as they are up 5.3% on average since the latest earnings results. Starting from a single Washington, D.C. location, CAVA (NYSE:CAVA) operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes. CAVA reported revenues of $331.8 million, up 28.1% year on year. This print exceeded analysts' expectations by 1.2%. Overall, it was a strong quarter for the company with an impressive beat of analysts' EPS estimates and a decent beat of analysts' EBITDA estimates. "In spite of economic uncertainty and challenging weather, CAVA's first quarter results demonstrate the continued strength of our category-defining brand,' said Brett Schulman, Co-Founder and CEO. CAVA pulled off the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street's published projections, leaving some wishing for even better results (analysts' consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 14.8% since reporting and currently trades at $84.55. Is now the time to buy CAVA? Access our full analysis of the earnings results here, it's free. With a unique origin story where the company actually started as an antique shop, Potbelly (NASDAQ:PBPB) today is a chain known for its toasty sandwiches. Potbelly reported revenues of $113.7 million, up 2.3% year on year, outperforming analysts' expectations by 1.7%. The business had an exceptional quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. Potbelly pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 21.2% since reporting. It currently trades at $10.35. Is now the time to buy Potbelly? Access our full analysis of the earnings results here, it's free. Started as a hot dog cart in New York City's Madison Square Park, Shake Shack (NYSE:SHAK) is a fast-food restaurant known for its burgers and milkshakes. Shake Shack reported revenues of $320.9 million, up 10.5% year on year, falling short of analysts' expectations by 2%. It was a softer quarter as it posted a miss of analysts' same-store sales and EBITDA estimates. Interestingly, the stock is up 33.6% since the results and currently trades at $117.28. Read our full analysis of Shake Shack's results here. Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes. Chipotle reported revenues of $2.88 billion, up 6.4% year on year. This print missed analysts' expectations by 2.1%. It was a slower quarter as it also logged a miss of analysts' same-store sales estimates. Chipotle had the weakest performance against analyst estimates among its peers. The stock is up 4.2% since reporting and currently trades at $50.75. Read our full, actionable report on Chipotle here, it's free. Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE:SG) is a casual quick service chain known for its healthy salads and bowls. Sweetgreen reported revenues of $166.3 million, up 5.4% year on year. This result surpassed analysts' expectations by 0.9%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts' EBITDA estimates. Sweetgreen had the weakest full-year guidance update among its peers. The stock is down 26.5% since reporting and currently trades at $13.36. Read our full, actionable report on Sweetgreen here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. 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Yahoo
16-05-2025
- Business
- Yahoo
Cava CEO on pricing: We want to be a port in 'inflationary storm'
Cava (CAVA) topped first quarter earnings expectations with same-store sales up nearly 11%, outperforming peers in a slowing restaurant sector. Cava CEO Brett Schulman joins Catalysts host Madison Mills and Yahoo Finance Senior Reporter Brooke DiPalma to discuss why the Mediterranean fast-casual restaurant kept guidance conservative despite crossing $1 billion while trailing its 12-month revenue basis. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Cava topping first quarter estimates of same-store sales climb nearly 11%, bucking the slowdown that other restaurant chains have reported. Here with me now, Brett Schulman, Cava's CEO, and our very own Brooke De Palma. Brett, great to have you here. The stock, as you just saw under a bit of pressure, even though you did have a great quarter, but the concern, as you know, is guidance. Walk me through your thinking. What was it about this quarter, about the environment that prevented you from giving higher guidance? Yeah, I think it's a testament though to our long-term success. When you look on a three-year basis, because we've had really dynamic growth over the last three years, in the first quarter of the last three years, we grew 41%. And we guided for the rest of the year in the high 30s. So, really, a small moderation when you look at it in the context of the longer term. And we're not focused on the day-to-day gyrations of the stock. We're focused on building the next large-scale cultural cuisine category, and we reached a really great milestone in the quarter. On a trailing 12-month basis, we crossed a billion dollars in revenue, really validating Mediterranean as that next large-scale cultural cuisine category, a category that we've established a clear leadership position in. Consumer sentiment did fall for the fifth straight month. We just got that report out. Now, this quarter was a bit slower in terms of same-store sales growth that we have seen in previous quarters. Can, is it possible in this environment to return to previous same-store sales growth that we've seen? Well, certainly we'd like to see some certainty on some of the policy fluidity out of Washington, but you know, we've seen this over the course of the last year where consumers have been facing increasing headwinds. And so, that's why we've been investing in our guest. We've underpriced CPI by 800 basis points in recent years. And that's at a time when many have taken a price almost double CPI in some cases. And only 1.7% menu adjustment pricing earlier this year. We have no plans to take further price and really kind of be a port in that uncertainty and inflationary storm for our guests where they're becoming more selective, but they're still selecting to choose to eat at Cava. I do want to hit a point on that. When I spoke to Scott Boatwright, Chipotle's CEO last month, he said that Chipotle is about 10 to 20% less than fast casual peers. How is Cava winning in this environment even with a higher price point? I ask you every quarter, what's the average price now? Yeah, so the average price per person is around 1450. And again, we look at value as a combination of multiple factors. It's the relevance of the cuisine, which Mediterranean diet has been number one ranked diet for eight years running. It's the quality of the ingredients we're sourcing, the convenience in which you can access it in our multi-channel format, and the experience we deliver with that Mediterranean hospitality and the bang for the buck that we're delivering. And we see that resonating. We noted that we have not seen an erosion of premium protein attachment or our fan favorite pita chips. So clearly, guests are able to come in, eat at Cava, and actually trade up into premium proteins and pita chips and still fit within their budget. You're even getting low-income consumers come to Cava at a time like this. How do you balance higher inflation while also sticking to that price point and not raising prices in this environment? Well, that's our job to work on behalf of that for our guests every day. And we even noted that with some of the tariff impact, which is fairly minimal to us. We quantified about 20 to 40 basis points with the current policies that have been pretty fluid, that we have been able to work, whether it's with our suppliers, whether it's with operational efficiency, to absorb that on behalf of our guests and maintain our full-year restaurant level margin guidance at 24.8 to 25.2%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Cava CEO on pricing: We want to be a port in 'inflationary storm'
Cava (CAVA) topped first quarter earnings expectations with same-store sales up nearly 11%, outperforming peers in a slowing restaurant sector. Cava CEO Brett Schulman joins Catalysts host Madison Mills and Yahoo Finance Senior Reporter Brooke DiPalma to discuss why the Mediterranean fast-casual restaurant kept guidance conservative despite crossing $1 billion while trailing its 12-month revenue basis. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Sign in to access your portfolio
