Latest news with #restaurantgrowth
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
Bloomberg
01-07-2025
- Business
- Bloomberg
FAT Brands' Wiederhorn on Growth, Debt Paydown: Choppin' It Up
Sales almost double when we convert a Smokey Bones to a Twin Peaks, FAT Brands' Chairman Andy Wiederhorn tells Bloomberg Intelligence. In this episode of the Choppin' It Up podcast, Wiederhorn sits down with BI's senior restaurant and foodservice analyst Michael Halen to discuss FAT Brands growth opportunities, including Twin Peaks, and plans to repay debt. He also comments on franchisee health, everyday value and the refranchising of Fazoli's.
Yahoo
29-06-2025
- Business
- Yahoo
Chipotle Stock Has Rolled Its Way Back. Wall Street Isn't Looking for Much More
Chipotle's stock has recovered from its post-"Liberation Day" slump. Wall Street doesn't expect much more upside. The company in late April warned of less same-store sales growth this year than previously expected. The current mean price target for Chipotle, as tracked by Visible Alpha, is $59.12, 7% above Friday's stock has recovered, and then some, from its post-"Liberation Day" slump. Wall Street doesn't expect much more upside. What gives? That's the latest question for investors in the burrito-rolling, quesadilla-flipping, taco-topping giant, shares of which rose more than 30% in 2024 but this year—despite their steady climb since early April—are down nearly 9% through Friday's close. Analysts broadly see plenty of room for Chipotle Mexican Grill (CMG) to keep growing. Management is targeting thousands of new restaurants in North America alone. But the company in late April warned of less same-store sales growth this year than previously expected. The closely watched number turned negative in the first quarter amid economic uncertainty and other factors. That has contributed to a tepid outlook for the historically high-flying stock—and several others in the food business, to be sure—among sell-side analysts. The current mean price target for Chipotle, as tracked by Visible Alpha, is $59.12, 7% above Friday's close. Even at that level, Chipotle would still be down for the year. "With recent underlying momentum strong, we believe Chipotle shares once again justify a premium valuation on what should be outsized top and bottom-line growth going forward," Barclays analysts wrote Thursday. "However, we struggle to forecast additional upside, with expectations already elevated and high-growth concepts vulnerable to a slowing macro." Barclays reiterated a "neutral" rating, lifting its price target—but only by $2, to $54, a boost more restrained than those it gave to shares of several counterparts, Shake Shack (SHAK) among them. JPMorgan analysts in late May reiterated a "neutral" rating on Chipotle, clipping their price target by $4 to $54, and on Wednesday called the stock "near fairly priced." Chipotle's second-quarter results are due July 23. Wall Street is looking for a 2.9% year-over-year drop in same-store sales, far worse than the 0.4% the company reported for the first quarter. In the company's Q1 earnings conference call, according to a transcript provided by AlphaSense, CEO Scott Boatwright said the consumer was "sitting on the sideline." To be sure, there's more bullishness out there in some corners—including at Stifel, which at $65 is one of a few outfits tied with the highest target as tracked by Visible Alpha. "We were encouraged [that] the company is responding quickly to the realities of the current environment," the bank's analysts wrote in late April. "We believe Chipotle is well-positioned to regain sales momentum." Read the original article on Investopedia Sign in to access your portfolio
Yahoo
28-06-2025
- Business
- Yahoo
First Watch plans for dozens of new restaurants in 2025. Here's where.
First Watch operates more than 580 restaurants in 31 states, and that number is expected to grow in 2025. The company said on its 2025 first quarter earnings call on May 6 it had opened 13 restaurants in 10 states in the first three months of the year, resulting in a total of 584 restaurants – 498 company-owned locations and 86 franchise-owned. Also on the earnings call, First Watch said it expects to open between 59 and 64 new restaurants in the 2025 fiscal year. "First quarter same restaurant traffic results are encouraging and continued the trends we experienced exiting 2024, demonstrating both the strength and the resilience of the First Watch brand," First Watch President and CEO Chris Tomasso said on the call. Tomasso said locations that opened in 2024 and 2025 have exceeded expectations despite "uncertainty" in the economic environment. Here's a look at where the chain has opened new restaurants so far in 2025 and where they are opening new locations the rest of the year. The company said it opened 13 new locations in 10 states in the first three months of the year: Alabama Florida Illinois Indiana Kentucky Maryland Massachusetts South Carolina Tennessee Virginia The Massachusetts location is the company's first-ever New England location, according to a First Watch spokesperson, and is located in Hanover. The company plans to open a second Massachusetts location, on Boylston Street in downtown Boston, later this year. 'This high-profile location in the heart of Boston is a major milestone as we continue our growth in New England and beyond,' said Chris Tomasso, First Watch CEO & President, in a news release on April 23. 'We're grateful for the warm welcome we received for our first Massachusetts location earlier this year and look forward to bringing First Watch's innovative menu and signature hospitality to the Back Bay.' The company also told USA TODAY it entered its 31st state – Idaho – in May. The company told USA TODAY it plans to open new locations in the following states in the back half of 2025: Alabama Arizona Delaware Florida Georgia Idaho Illinois Kentucky Maryland Massachusetts Missouri Nevada North Carolina Ohio Pennsylvania South Carolina Tennessee Texas Utah Virginia Wisconsin The company's new restaurant in Nevada will be located in Las Vegas and is scheduled to open this summer, a First Watch spokesperson told USA TODAY. Nevada will be the company's 32nd state with a location. Additionally, the company's first location in Memphis, Tennessee is slated for Sept. 2025. Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at Gdhauari@ This article originally appeared on USA TODAY: First Watch opening dozens of new locations in 2025. See where.
Bloomberg
11-06-2025
- Business
- Bloomberg
Ziosk's Howard on Lifting Sales, Ops Via Digital
Establishing a digital relationship with the 75% of a chain's patrons that aren't loyalty customers will be the growth engine for full-service restaurant traffic going forward, Ziosk Cofounder and Chief Revenue and Growth Officer Raymond Howard tells Bloomberg Intelligence. In this episode of the Choppin' It Up podcast, Howard sits down with BI's senior restaurant and foodservice analyst Michael Halen to discuss how the company's offerings, including order and pay on demand, are helping restaurant chains improve their restaurant operations and marketing. He also comments on AI and his vision of the smart-table experience of the future.
