Cava Group on Tuesday beat Wall Street expectations for second-quarter sales and core profit, helped by demand for its affordable Mediterranean food. The restaurant chain known for its customizable offerings said a multistate cyclosporiasis outbreak in July, which made consumers wary of eating out, slowed sales.

Quarterly Results

For the second quarter ended July 12, same-restaurant sales rose 9%, topping analysts’ estimates of 7.63%, according to data compiled by LSEG. Guest traffic grew 5.3%. Quarterly revenue jumped 31.3% to $365.4 million, above expectations of $360.5 million, while adjusted EBITDA rose 30% to $54.7 million, topping estimates of $52.1 million.

Cava’s upbeat results come even as major U.S. fast-food chains struggle to attract price-conscious diners, with discounts no longer enough to drive traffic. Cava also rolled out new menu items, including harissa barbecue pita chips and pomegranate-glazed salmon to draw in more diners.

Forecasts

The chain reiterated its fiscal 2026 forecast for same-restaurant sales growth of 4.5% to 6.5% and adjusted EBITDA of $181 million to $191 million. CEO Brett Schulman said the unchanged forecasts reflect uncertainty over recent food safety issues, a “fluid” macroeconomic and geopolitical backdrop, and lingering inflation, including higher gas prices.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.