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.

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.

Trends to Watch

Next Week: Leveraged Ether ETF to Start Trading June 4, Sponsor Volatility Shares Says (CoinDesk)

Oiling the Wheels: Hess shareholders sign off on $53 billion sale to Chevron (Reuters)

Brewing up Union Talks: Starbucks is set to resume union negotiations as it confronts issues at its stores (CNBC)

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

Feeling Fine: US Consumer Confidence Rises for First Time in Four Months (Bloomberg)

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_{The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.}