Cava Projects Profit Growth in First Update Since June IPO

Cava Group Inc.expects higher profits this year, although it cautioned that a muddy consumer-spending picture could limit sales gains.

In its first annual outlook after going public in June, the fast-casual Mediterranean chain projected restaurant-level profit margins of at least 23%, which is three percentage points higher than in 2022. Same-restaurant sales growth, a measure of how stores open for at least a year are performing, are seen 13% to 15% higher. At the low end, that figure implies a slight deceleration from last year’s 14.2% advance.

For now, Cava is maintaining its allure, with same-store sales in ...