RealPeopleGroup/iStock via Getty Images
Stock futures moved up slightly in premarket trading on Friday as market participants eagerly awaited Fed Chair Jerome Powell’s key Jackson Hole speech, seeking clues on possible upcoming rate cuts.
Here are some of Friday’s biggest stock movers:
Biggest stock gainers
- CAVA Group’s (NYSE:CAVA) shares surged over 9% to a new all-time high of $111.33 in premarket trading on Friday following the company’s strong Q2 results. Revenue jumped 35.2% Y/Y, fueled by the addition of 78 new CAVA restaurants and a 14.4% increase in same-restaurant sales, which included a 9.5% rise in customer traffic. The company’s comparable sales growth was also bolstered by a 4.9% increase in menu prices and product mix. CAVA’s restaurant-level profit margin improved by 40 bps to 26.5% of sales, driven by higher sales leverage, though partially offset by wage investments and costs related to the June 3rd launch of grilled steak. Digital sales accounted for 35.8% of total revenue in the quarter, which ended on July 14. Adjusted EBITDA rose 15% Y/Y, and for FY2024, the company now expects restaurant comparable sales growth of 8.5% to 9.5%, ahead of the consensus estimate of 6.1%. CAVA also raised its adjusted EBITDA guidance to a range of $109M to $114M, up from the previous outlook of $100M to $105M, with 54 to 57 net new restaurant openings expected.
- Ross Stores (NASDAQ:ROST) shares surged 6% after reporting strong Q2 results. The company’s value-oriented offerings resonated with consumers, leading to a 7.3% increase in sales and a 20% jump in profits. CEO Barbara Rentler attributed the success to the company’s ability to provide quality products at competitive prices, especially in a challenging economic environment. The company also raised its FY24 profit guidance for the second time, now expecting $6.00 to $6.13 per share, up from the initial range of $5.79 to $5.98 and above the estimated $6.01, indicating optimism about its continued growth and market share gains.
- Workday (NASDAQ:WDAY) shares jumped 11% following the release of Q2 results that exceeded expectations. The company projected Q3 subscription revenue of $1.955B, marking a 16% Y/Y increase, and reaffirmed its FY2025 subscription revenue forecast of $7.7B to $7.73B. Additionally, Workday raised its adjusted operating margin guidance to 25.25%, up from 25%. CFO Zane Rowe emphasized the company’s focus on balancing targeted investments with operational efficiencies, maintaining its full-year FY25 subscription revenue outlook, while slightly increasing expectations for FY25 non-GAAP operating margin. Workday also announced a partnership with Equifax to simplify the employment and income verification process.
Biggest stock losers
- Red Robin Gourmet Burgers (NASDAQ:RRGB) shares plunged over 17% after the company reported a wider-than-expected Q2 loss, lowered its FY24 guidance, and posted a 0.8% decline in comparable restaurant sales. The loss widened to $0.47 per share, missing estimates, as guest traffic fell 6.7% despite a 7.6% increase in menu prices. The company also reduced its revenue forecast from $1.275B to $1.25B and lowered its restaurant-level operating profit margin to 11.0% to 11.5% from initial guidance of 12.5% to 13.5% and adjusted EBITDA expectations for the year to $40M to $45M from $60M-$70M, initially. The range for capital expenditures was narrowed to $25M-$30M from $25M-$35M previously.
