Fast-casual restaurant Cava posted second-quarter earnings that beat expectations. Net sales reached $233.5 million, up 35.2%, compared to the $219 million analysts had forecast. Reported second-quarter 2024 net income was $19.7 million, with adjusted earnings per share of 17 cents, versus forecasts of 13 cents.

Higher customer traffic, up 9.5% year-on-year, as well as higher menu prices and new locations, pushed sales at existing stores up 14.4%, almost double what experts expected. In June, Cava added a new grilled steak to the menu, which the restaurant said exceeded expectations.

“At a time when consumers are increasingly feeling the pressure of an uncertain economy and are more discerning about where and how they spend their money, they are choosing to dine at Cava,” CEO Brett Schulman said, according to Yahoo! Finance.

While many restaurants are closing locations, Cava remains on an expansion path. The chain currently has 341 locations but plans to have about 1,000 by 2032. It opened 18 new restaurants in the second quarter, up from 14 new locations in the first quarter. The company also operates 10 Hybrid Kitchen Hubs and 10 Digital Kitchen Hubs.

For the 2024 financial year, Cava expects sales growth of between 8.5 and 9.5 percent, which is more than the previous estimate of 3 to 5 percent. Around 54 to 57 new locations will be opened, instead of the 50 to 54 originally planned for the year.

According to Schulman, the Mediterranean restaurant has raised its prices by 12% in recent years, but overall the increase has not been as dramatic as at fast food and grocery stores.

Earlier this year, Cava promised to keep prices stable in California despite higher labor costs. According to Chief Financial Officer Tricia Tolivar, the company is prepared to bear the increased costs and not pass the burden on to customers.

Cava isn’t content with just opening new locations to stay ahead of the competition. Next year, the restaurant plans to test catering in major markets, with a national launch planned for 2026. The restaurant is also revamping its rewards program to increase brand awareness.