Cava (CAVA) is serving up some savory numbers for its investors, leading the stock to new highs.

After the market close on Thursday, the Mediterranean fast-casual chain reported second quarter results that beat estimates across revenue, earnings, and same-store sales.

Net sales jumped 35.2% year over year to $233.5 million, compared with expectations of $219 million. Adjusted earnings per share came in at $0.17, versus the $0.13 expected.

Same-store sales jumped 14.4%, more than the 7.45% Wall Street expected. Sales growth was driven by higher foot traffic (up 9.5% year over year), an increase in menu price, new locations, and the launch of grilled steak on June 3.

On Wednesday, Cava stock hit a record-high close of $102.39, and on Friday, it hit an intraday high of $122.95, making its biggest intraday jump ever.

The steak launch surpassed its expectations by a landslide, CEO Brett Schulman told Yahoo Finance the team is “working on a deep pipeline of innovation” for the next few years. Schulman said the company’s “value proposition” is drawing diners as consumers trade down from fine-dining restaurants but trade up from fast food.

The company raised its full year outlook to sales growth of 8.5% to 9.5% as a “reflection of the strength we continue to see in the business,” he told Yahoo Finance, adding that he expects to hold onto momentum in Q3 and Q4.

“It implies low double digit comps [comparable same-store sales growth] for the remainder of the year,” he said.

Shares are up 180% year to date, compared to 20% for Chipotle (CMG) and 18% for the S&P 500 (^GSPC).

Slow and steady is Cava’s go-to approach to expansion. By 2032, the company plans to have 1,000 Cava locations.

Citi analyst Jon Tower said there’s still room left for growth in a note to clients. “A unit growth opportunity that continues to re-set higher, discrete same-store sales, price, and margin opportunities as the system densifies and margin tailwinds as the footprint shifts towards lower cost markets.”

In Q2, Cava opened 18 new locations, bringing the total to 341.

TD Cowen analyst Andrew Charles is bullish on Cava’s 2032 goal, citing its wide appeal. He expects 50% of next year’s new locations to have digital pick up lanes. There are currently 45 as of now.

Stifel analyst Chris O’Cull, who has a buy rating on Cava, projects long-term revenue growth in the 17-20% range, boosted by 15% unit growth and low to mid-single digit same store sales growth.

Schulman said within existing markets, there is still runway to build more brand awareness. Other future growth drivers include the relaunch of its loyalty program in October and catering.

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The company aims to market test catering in major metros in 2025 and launch it on a national scale in 2026.

It currently has 10 digital kitchen hubs and 10 hybrid kitchen hubs in various locations, as well as regular Cava locations that are testing catering.

Cava’s also experimenting with AI technology in the kitchen to increase throughput and detect when food is low. Unlike its competition, humans will walk consumers through the line to build bowls.

“Our mission is to bring heart health and humanity to food and if we lost that humanity piece, I don’t think we’d be living up to our mission,” Schulman told Yahoo Finance.

The company continues to perform at a time when fast-casual dining seems to be bucking a broader slowdown across the food industry as consumers double down on value.

“Cava was one of just a handful of publicly traded restaurant brands with positive traffic growth in the second quarter,” Schulman said on the earnings call.

He added that from 2019 to 2023, the company raised prices 12%, less than fast food price increases and grocery price increases overall, per CPI data.

“For a dollar or two more… you can get a bowl of fresh Mediterranean food at Cava versus a traditional fast food, freezer to fryer meal. We’re see seeing people trade over and trade up to us,” he told Yahoo Finance.

Chipotle blew past expectations in its report after same-store sales jumped 11.1% year over year, versus the 9.23% Wall Street anticipated. Shake Shack (SHAK) saw same-store sales climb 4%, beating estimates of 3.2%.

Sweetgreen (SG) reported its best same-store sales growth in two years, up 9%, driven by higher foot traffic and prices.

Its CEO, Jonathan Neman, told Yahoo Finance that “we’re going to be very judicious in how we use it [pricing power].” Neman claimed the chain took fewer price hikes than its rivals since the pandemic.

“As you look at the relative pricing difference between Sweetgreen, some of our fast-casual competitors and then QSR, the gap has really narrowed. QSR, you can’t get in and out of there for under $15 today,” he told Yahoo Finance.

Here’s what Cava reported, compared with Wall Street estimates, per Bloomberg consensus data:

• Revenue: $233.5 million versus $219.5 million

• Adjusted earnings per share: $0.17 versus $0.13

• Same-store sales growth: 14.4% versus 7.45%

The company raised its fiscal 2024 outlook for restaurant openings, sales growth, and restaurant-level profit margin.

It now expects sales growth of 8.5% to 9.5%, up from 4.5% to 6.5% in Q1 and its previous guidance of 3% to 5%.

The total number of new restaurants will now be between 54 and 57, up from 50 to 54. The restaurant-level profit margin is expected to be between 24.2% and 24.7%, up from 23.7% to 24.3%.

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Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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