CAVA's Guest Traffic Woes 📉

And, American Airlines slashes outlook.

Source: CAVA Group

Today is Wednesday, May 29, 2024.

The Early Bird Index today is 73.84.

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CAVA's Guest Traffic Woes 📉

Despite posting good financial results on Tuesday, shares of the Mediterranean fast-casual restaurant CAVA Group (NYSE: CAVA) declined by 2.00% in after-hours trading.

Financials: CAVA reported earnings of 12 cents per share in the past quarter and revenue of $259 million; both were better than expected.

Details: Revenue grew 30%. There were 14 net new restaurant openings during the quarter. Same-restaurant sales increased by 2.3%.

Outlook: CAVA raised its fiscal full-year 2024 guidance. It expects same-restaurant sales to grow between 4.5% to 6.5%.

Yes, But: The company experienced a 1.2% decrease in guest traffic during the quarter, which is a problem.

Stock Price: CAVA was up 101% this year before these results.

Final Thoughts: CAVA’s results show that consumers are starting to reduce spending. This is a challenge for the restaurant industry.

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Notables

Notable Earnings Today: Salesforce (NYSE: CRM), Abercrombie & Fitch (NYSE: ANF), HP (NYSE: HPQ), Chewy (NYSE: CHWY), C3.ai (NYSE: AI), Dick's Sporting Goods (NYSE: DKS), UiPath (NYSE: PATH), Advance Auto Parts (NYSE: AAP), Okta (Nasdaq: OKTA), Capri Holdings (NYSE: CPRI), Nutanix (Nasdaq: NTNX), Pure Storage (NYSE: PSTG), Agilent Technologies (NYSE: A), American Eagle Outfitters (NYSE: AEO), Columbus McKinnon (Nasdaq: CMCO), Credo Technology Group (Nasdaq: CFDO), nCino (Nasdaq: NCN), Stratasys (Nasdaq: SSYS), Allot (Nasdaq: ALLT), AMSC (Nasdaq: AMSC), Bank of Montreal (NYSE: BMO), Collplant Biotechnologies (Nasdaq: CLGN), MediWound (Nasdaq: MDWD), Nordic American Tankers (NYSE: NAT).

Notable IPOs Today: Concord Acquisition Corp II (NYSE American: CNDA), Chenghe Acquisition II Co. (NYSE American: CHEB).

Notable Equity Crowdfunding Campaigns Ending Today: Curtiss Motorcycle (Wefunder), Barrel Reserve Investments (Honeycomb), Grass Fed (Honeycomb).

Notable Economic Events Today: Fed Beige Book (2:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

American Airlines Slashes Outlook

American Airlines (Nasdaq: AAL) fell by 6.25% in after-hours trading on Tuesday after lowering its guidance for the second quarter.

Details: American Airlines is cutting its guidance for adjusted operating margin by 1% and decreasing its expected earnings per diluted share to the range of $1.00 to $1.15. It also anticipates a year-over-year decline in total revenue per available seat mile.

Also: The company announced that Vasu Raja, chief commercial officer, is leaving in June.

Final Thoughts: Shares of American Airlines are flat for the year. Will the other major airlines report similar results?

Robinhood’s $1 Billion Stock Buyback

Robinhood Markets (Nasdaq: HOOD) jumped 4.01% in after-hours trading on Tuesday after announcing a new $1 billion stock buyback.

Details: The buyback will occur over the next two to three years.

Final Thoughts: Robinhood, up 65% in 2024, is having a banner year.

Good and Bad: 5 things Ethereum ETFs could mean for altcoins (Cointelegraph)

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