CAVA Continues to Sizzle with Record-Breaking Q3 Performance
The Mediterranean-inspired fast-casual chain, CAVA, has once again defied industry trends and shattered records in its third quarter performance. In a conference call held on November 12, 2024, the company's Co-Founder and CEO, Brett Schulman, proudly announced that CAVA had achieved a 39% increase in revenue, with an average unit volume (AUV) of $2.8 million.
These remarkable results were further underscored by the chain's impressive same-restaurant sales growth of 18.1%, including a traffic growth of 12.9%. The company also reported the opening of 11 new restaurants, bringing its total count to 352 locations, a staggering 21.4% increase year-over-year.
On the financial front, CAVA's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) skyrocketed by 69% over the same period in 2023, reaching $33.5 million. Net income also saw a substantial jump, rising to $18 million, a 163% increase over Q3 2023. Moreover, the company generated an impressive $23.4 million in free cash flow during the quarter.
Brett Schulman attributed CAVA's outsized performance to the strength of its category-defining brand and unique value proposition. He emphasized that the chain is "defining what is now emerging as America's next major cultural cuisine category," with Mediterranean food resonating strongly with modern consumers who crave bold flavors, prioritize well-being, and see food as a form of self-expression.
CAVA's focus on creating authentic human connections through its multichannel format and digital channels has also contributed to its success. The company believes that technology should enhance, not replace, the human experience, allowing it to create warm and personal moments with customers while supporting team members in engaging with guests.
Schulman concluded by stating that CAVA's business is built on welcoming everyone to its table and delivering genuine hospitality to guests. As the company continues to execute across its strategic pillars, it remains poised to deliver long-term value to its stakeholders and further establish itself as a leader in the fast-casual market.
