Shares of Cava Group declined despite the company raising its full-year sales outlook after posting an unexpected profit and soaring sales in the third quarter.
The stock was down 6.9% at $31.38 in Wednesday trading. Shares started trading in June and have come down from a high of $58.10 from late July.
After the bell on Tuesday, the fast-casual Mediterranean food chain posted a third-quarter profit of $6.8 million, or 6 cents a share, compared with a loss of $11.9 million in the same quarter a year ago. Analysts surveyed by FactSet had been expecting the company to log a quarterly loss of 1 cent per share.
Sales jumped to $175.6 million from $139.3 million, clearing analyst forecasts of $171.5 million, according to FactSet. Same-restaurant sales grew 14.1%.
The chain boosted its full-year guidance for same-restaurant sales to grow 15% to 16% instead of 13% to 15% as previously projected. It also lifted its outlook for new openings and restaurant-level profit margins.
Chief Financial Officer Tricia Tolivar said on a call with analysts that the first quarter of 2024 will likely be challenging for the company as it laps strong growth in the year-ago quarter. “I wouldn’t expect significant positive comps as we go into [1Q],” she said.