CAVA GROUP, INC. SEC 10-Q Report

CAVA Group, Inc., a leading player in the fast-casual dining industry, has released its latest Form 10-Q report, showcasing robust financial and operational performance for the recent quarter. The report highlights significant growth in revenue, operating income, and net income, driven by new restaurant openings and increased same restaurant sales. Additionally, the company has made strides in operational efficiency and continues to expand its restaurant base.

Financial Highlights

• Revenue: $331.8 million, reflecting a 28.1% increase from the prior year period driven by new restaurant openings and same restaurant sales growth.
• Operating Income: $15.7 million, representing a 69.8% increase from the prior year period, indicating improved operational efficiency.
• Net Income: $25.7 million, an 83.7% increase from the prior year period, benefiting from a reduction in income tax expense associated with equity-based compensation.
• Basic EPS: $0.22, compared to $0.12 in the prior year period, reflecting the company's improved profitability.
• Diluted EPS: $0.22, consistent with Basic EPS, indicating no significant dilution from outstanding equity awards.

Business Highlights

• Revenue Segments: CAVA Group operates two segments: CAVA, which includes all company-owned restaurants, and CAVA Foods, which produces dips and spreads for both restaurant use and consumer-packaged goods (CPG) sales. CAVA segment revenue was $328.5 million, while CPG and other revenue contributed $3.3 million.
• Sales Units: The company operated 382 CAVA restaurants as of April 20, 2025, an increase from 323 restaurants in the previous year. This includes 15 new restaurant openings during the reporting period.
• CAVA Same Restaurant Sales Growth: The CAVA segment experienced a same restaurant sales growth of 10.8%, driven by a 7.5% increase in guest traffic and a 3.3% increase from menu price and product mix.
• CAVA Digital Revenue Mix: Digital sales accounted for 38.0% of total CAVA revenue, reflecting a 1.0% increase from the previous year.
• New Product Launches: The launch of grilled steak in the second quarter of fiscal 2024 contributed to increased input costs in the food, beverage, and packaging category.
• Operational Efficiency: CAVA Foods achieved operational efficiencies in food, beverage, and packaging costs due to improvements at the Verona, VA facility, leading to a decrease in these costs as a percentage of revenue.
• Future Outlook: The company plans to continue expanding its restaurant base and investing in operational efficiencies to support future growth. Management believes that cash flows from operations and existing cash reserves will be sufficient to meet anticipated cash requirements for the foreseeable future.

SEC Filing: CAVA GROUP, INC. [ CAVA ] - 10-Q - May. 15, 2025