Customers arrived at a Kava restaurant in New York City on 22 June 2023.
Brendon McDermid | Roots
To move a horse around in a circle A disappointing second quarter on Tuesday reduced its entire year’s forecast to increase uniform-store sales.
For the whole year, Kava now estimates the same-store sales growth of 4% to 6%, below the east range of 6% to 8%.
The company’s shares declined more than 20% in extended trading. The stock has fallen 40% this year, including the hour steps.
Here’s what the company expected compared to Wall Street, based on a survey of analysts by LSEG:
- earnings per share: 16 cents are expected to 13 cents
- Income: $ 280.6 million vs $ 285.6 million is expected
The restaurant company reported a net of $ 18.4 million below $ 19.7 million or $ 18.4 million per share, or the second quarter per share.
Net restaurant sales Gligated to 20% to $ 278.2 million, thanks to the opening of the new restaurant on a large scale.
The same-store sales of the series, a metric that only tracks the performance of the restaurants that are at least one year open, increased 2.1% during the quarter. According to Strikint’s estimates, Kava managed to increase the industry’s tendency to fall in the same-store sales, anticipating an increase of 6.1%Wall Street.
Kava said its quarterly traffic was “broadly flat”. A year ago, the company Uniform store selling climb 14.4%, fuel from traffic growth of almost double digits. At that time, Kava’s CEO and co-founder Brett Shulman credited the introduction of his grilled steak option as one of the reasons the customer kept coming to the restaurant during the quarter.
CFO Trissia Toliver told CNBC on Tuesday that the second quarter began with a strong similar-store sales growth, due to which the company reiterated its former approach when it reported it. First-fourth resultHowever, he said, once the chain celebrated a one -year launch of Grilled Stake, saw that the growth was slow.
Rival fast-casual chain has also fought with sales in this quarter. Chipotal mexican grill Equal store sales reported 4%decline, while salad chain Sweetgreen saw Stock plumate The company cut its approach to the second straight quarter.
In addition to reducing its similar-store sales forecast, Kava repeated other major financial estimates for the whole year. The company still estimates interest, taxes, depreciation and adjusted income before a refinement of $ 152 million to $ 159 million. Kava also maintained her forecast for a restaurant-level profit margin of 24.8% to 25.2%.
Kava also announced on Tuesday that it participated in the $ 25 million series B funding round for Hyphen, which automatically automatically puts plate and bowl parting. Chipotal mexican grillWho has already invested in Hyphen, led the funding round with Kava.
Shulman said in a statement, “By piloting Hyphen’s automatic digital macalyn, we have the opportunity to increase order accuracy and speed during peak digital hours, while decreasing the complexity for our team members,” Shulman said in a statement.
