The contrast: Healthy-oriented fast-casual chains Cava and Sweetgreen delivered vastly different results in Q3.
Cava raised its full-year outlook for a third straight quarter after its top- and bottom-line results beat market expectations. The company’s revenues grew 39.0% year over year, same-restaurant sales rose 18.1%, and guest traffic increased 12.9%.
Meanwhile, Sweetgreen’s revenues grew 13.1%, just short of expectations, and the salad-centric chain lost 18 cents per share, 3 cents more than analysts expected. The company still hasn’t turned a profit.