Core Insights - CAVA Group, Inc. reported weaker-than-expected third-quarter earnings, with earnings of 12 cents per share, missing the consensus estimate of 13 cents, and quarterly revenue of $292.23 million, falling short of the Street estimate of $292.8 million [1] - Following the earnings announcement, CAVA Group shares declined by 1.7%, closing at $51.70 [2] Analyst Ratings and Price Targets - TD Cowen analyst Andrew M. Charles maintained a Buy rating on CAVA Group but lowered the price target from $80 to $67 [4] - Keybanc analyst Christopher Carril also maintained an Overweight rating while reducing the price target from $85 to $65 [4] - Stifel analyst Chris O'Cull kept a Buy rating on CAVA Group and decreased the price target from $100 to $75 [4]

Core Insights - Cava has cut its full-year forecast for the second consecutive quarter due to a decline in visits from younger diners [1][10] - The overall restaurant industry has seen a slowdown in growth, affecting not only Cava but also other brands like Chipotle and Sweet Green [2] Company Performance - Cava reported a 20% year-over-year revenue growth, with same-restaurant sales accelerating from 16.5% to 20% on a two-year basis [3] - The demographic most affected by the decline in visits is the 25 to 34 age group, which constitutes a significant portion of Cava's core customer base [5][6] - Despite market share growth within the younger demographic, their frequency of visits has decreased due to inflationary pressures and reduced spending power [6] Industry Context - The restaurant industry has raised prices by an average of 34% since 2019, while Cava has only increased prices by less than 17% during the same period [8] - Overall restaurant transactions have declined by 7% since 2019, indicating a broader trend of consumers finding dining out too expensive [8] Financial Guidance - Cava has trimmed its guidance for the remainder of the year due to uncertainties, including the impact of the recent government shutdown on disposable income for government workers [10] - The company aims to maintain its value proposition by absorbing some costs, including a 20 basis point impact from tariffs, without passing these costs onto customers [12] Cost Management - Cava has experienced excess spending on repairs and maintenance, which may affect margins [11] - The company anticipates low to mid-single-digit cost of goods sold (COGS) inflation next year, which it believes can be managed [12]

For the quarter ended September 2025, Cava Group (CAVA) reported revenue of $292.24 million, up 19.9% over the same period last year. EPS came in at $0.12, compared to $0.15 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $293 million, representing a surprise of -0.26%. The company delivered an EPS surprise of -7.69%, with the consensus EPS estimate being $0.13.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

分组1 - Cava Group reported quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.13 per share, and down from $0.15 per share a year ago, representing an earnings surprise of -7.69% [1] - The company posted revenues of $292.24 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.26%, and up from $243.82 million year-over-year [2] - Cava shares have lost about 53.4% since the beginning of the year, while the S&P 500 has gained 16.5% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.04 on revenues of $274.76 million, and for the current fiscal year, it is $0.55 on revenues of $1.18 billion [7] - The Zacks Industry Rank for Retail - Restaurants is currently in the bottom 14% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Revenue and Sales Growth - CAVA Group, Inc. reported CAVA Revenue of $289.8 million for the twelve weeks ended October 5, 2025, representing a 20.0% increase from $241.5 million in the same period last year[69]. - Revenue for the twelve weeks ended October 5, 2025, was $292,238,000, representing a 19.9% increase from $243,817,000 in the same period of 2024[82]. - CAVA segment revenue for the forty weeks ended October 5, 2025, was $896,518,000, a 22.9% increase from $729,173,000 in the same period of 2024[88]. - Revenue for the forty weeks ended October 5, 2025, reached $904.679 million, an increase of 22.8% from $736.318 million in 2024[106]. - CAVA same restaurant sales growth was 5.1%, driven by a 2.6% increase in guest traffic and a 2.5% increase from menu price and product mix[89]. Profitability and Income - CAVA Restaurant-Level Profit for the twelve weeks ended October 5, 2025, was $71.2 million, with a margin of 24.6%, down from 25.6% in the prior year[75]. - Adjusted EBITDA for the twelve weeks ended October 5, 2025, was $40.0 million, an increase of 19.6% from $33.5 million in the same period last year[69]. - Net income for the twelve weeks ended October 5, 2025, was $14.7 million, a decrease of 17.9% from $18.0 million in the prior year[69]. - Adjusted EBITDA for the forty weeks ended October 5, 2025, was $126.996 million, up from $101.144 million in 2024, representing a growth of 25.5%[106]. - Adjusted Net Income for the forty weeks ended October 5, 2025, was $58.822 million, compared to $43.741 million in 2024, marking a rise of 34.4%[107]. Expenses and Costs - Total operating expenses for the twelve weeks ended October 5, 2025, were $275,117,000, a 19.6% increase from $230,049,000 in the prior year[82]. - CAVA's food, beverage, and packaging costs increased by $15.0 million, primarily due to new restaurant openings and a 1.9% increase in Same Restaurant Sales[75]. - Labor costs increased by $12.6 million, attributed to new restaurant openings and a 2% rise in average hourly wages[78]. - CAVA's occupancy costs increased by $3.1 million, but as a percentage of revenue, they decreased due to operating leverage from higher sales[79]. - General and administrative expenses increased to $104,944,000 for the forty weeks ended October 5, 2025, from $91,951,000 in the prior year, reflecting investments for future growth[95]. Restaurant Openings and Expansion - The company opened 17 new CAVA restaurants during the twelve weeks ended October 5, 2025, compared to 11 openings in the same period last year, bringing the total to 415 locations[72]. - The company opened 106 net new CAVA restaurants during or subsequent to the forty weeks ended October 6, 2024[89]. - Pre-opening costs rose to $14,519,000 for the forty weeks ended October 5, 2025, from $9,500,000 in the previous year, due to a higher volume of new restaurant constructions[95]. Cash Flow and Financial Position - Cash and cash equivalents decreased to $284.6 million as of October 5, 2025, down from $366.1 million as of December 29, 2024[112]. - Net cash provided by operating activities increased by 10.2%, totaling $144.537 million for the forty weeks ended October 5, 2025, compared to $131.174 million in 2024[113]. - Net cash used in investing activities surged by 184.6%, amounting to $228.808 million for the forty weeks ended October 5, 2025, compared to $80.389 million in 2024[113]. - The company expects cash flows from operations and existing cash on hand to meet anticipated cash requirements for the next twelve months, including capital expenditures for restaurant expansion[109]. Tax and Depreciation - The effective tax rate for the forty weeks ended October 5, 2025, was 9.1%, compared to 0.9% for the same period in 2024[102]. - Depreciation and amortization increased to $55,254,000 for the forty weeks ended October 5, 2025, from $45,380,000 in the prior year, primarily due to new restaurant openings[95]. Market Risks - The company is exposed to market risks including commodity and food price risks, labor costs, and interest rate risk, with no material changes reported since the previous year[121].

Financial Data and Key Metrics Changes - CAVA's revenue in Q3 2025 grew 20% year over year to $289.8 million and 66.8% compared to Q3 2023 [19][6] - Same restaurant sales increased 1.9%, with guest traffic approximately flat [19][7] - Adjusted EBITDA for Q3 was $40 million, a 19.6% increase versus Q3 2024 [22] - Net income reported was $14.7 million, with diluted EPS at 12 cents [23] - Year-to-date free cash flow was $23.3 million [24] Business Line Data and Key Metrics Changes - CAVA opened 17 net new restaurants, bringing the total to 415 locations [19][9] - Restaurant-level profit margin was 24.6%, compared to 25.6% in Q3 2024 [20] - Food, beverage, and packaging costs were 30.1% of revenue, reflecting a slight increase due to tariffs and new menu items [20] - Labor costs were 25.5% of revenue, reflecting a 2% wage increase [20] Market Data and Key Metrics Changes - CAVA's same restaurant sales growth accelerated by 350 basis points to 20% on a two-year basis [19][31] - The overall restaurant industry has seen a decline in transactions by 7% since 2019, while CAVA has grown transactions in the mid-20s [58] Company Strategy and Development Direction - CAVA aims to expand its Mediterranean cuisine across the U.S., focusing on community engagement and brand loyalty [6][8] - The company is investing in technology and operational improvements to enhance guest experiences and streamline operations [14][13] - CAVA plans to introduce new menu items, including salmon, and expand its catering test in 2026 [45][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic pressures affecting consumer spending, particularly among younger demographics [8][56] - Despite challenges, CAVA remains confident in its long-term structural health and market share growth [25][26] - The company anticipates 68-70 net new restaurant openings in 2025 and same restaurant sales growth of 3%-4% [24] Other Important Information - CAVA's loyalty program has grown by approximately 36% since its relaunch, enhancing guest engagement [12][58] - The company has zero debt and $387.7 million in cash and investments, with access to a $75 million undrawn revolver [23][24] Q&A Session Summary Question: Impact of honeymoon dynamics on same-store sales - Management noted that honeymoon impacts remain similar to previous quarters, with macroeconomic pressures being the primary concern [30][31] Question: Performance of salmon test - The salmon test has shown broad-based appeal and is expected to launch in late spring 2026 if current trends continue [37] Question: Changes in operations leadership - Leadership changes were made to proactively address future business needs and enhance guest experiences [40] Question: Traffic-driving initiatives for the next year - CAVA plans to innovate with pita chips and expand catering tests, alongside efficient marketing strategies [45] Question: Value perception among non-CAVA users - CAVA's value perception is strong, supported by biannual brand health surveys and third-party research [78] Question: Technology's role in improving throughput and guest frequency - Technology, including the kitchen display system, is expected to enhance order accuracy and improve guest experiences [82]

Financial Data and Key Metrics Changes - CAVA's revenue in Q3 2025 grew 20% year over year to $289.8 million and 66.8% compared to Q3 2023 [19][20] - Same restaurant sales increased 1.9%, with guest traffic approximately flat [19][20] - Adjusted EBITDA for Q3 was $40 million, a 19.6% increase versus Q3 2024 [22] - Net income reported was $14.7 million, with diluted EPS at 12 cents [23] - Year-to-date free cash flow was $23.3 million [24] Business Line Data and Key Metrics Changes - CAVA opened 17 net new restaurants, bringing the total to 415 locations [19][20] - Restaurant-level profit margin was 24.6%, down from 25.6% in Q3 2024 [20] - Food, beverage, and packaging costs were 30.1% of revenue, reflecting a slight increase due to tariffs and new menu items [20][21] Market Data and Key Metrics Changes - CAVA's same restaurant sales growth accelerated by 350 basis points to 20% on a two-year basis [19][20] - The company has maintained and increased market share despite overall restaurant industry sales growth [7][19] Company Strategy and Development Direction - CAVA aims to expand its Mediterranean cuisine across the U.S. while enhancing guest loyalty and operational integrity [6][9] - The company is focusing on culinary innovation, including the introduction of Chicken Shawarma and a salmon offering [10][11] - Project Soul, a restaurant redesign initiative, aims to create welcoming dining environments [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic pressures affecting consumer spending, particularly among younger demographics [8][56] - Despite challenges, CAVA remains confident in its long-term structural health and market positioning [25][26] - The company anticipates 68-70 net new restaurant openings in 2025 and same restaurant sales growth of 3%-4% [24] Other Important Information - CAVA's loyalty program has grown by approximately 36% since its relaunch, enhancing guest engagement [12][58] - The company has zero debt and $387.7 million in cash and investments, with access to a $75 million undrawn revolver [23][24] Q&A Session Summary Question: Impact of honeymoon phase on same-store sales - Management indicated that the honeymoon impact remains similar to previous quarters, with macroeconomic pressures being the primary concern [30][31] Question: Performance of salmon test - The salmon test has shown broad-based appeal and is expected to launch in late spring 2026 if current trends continue [37] Question: Changes in operations leadership - The leadership change was proactive to align capabilities with future growth, focusing on delivering exceptional guest experiences [40] Question: Future traffic-driving initiatives - CAVA plans to expand its pita chip innovation and catering tests, alongside enhancing marketing efforts [45] Question: Value perception among non-CAVA users - CAVA's value perception is strong, supported by biannual brand health surveys and third-party research [78] Question: Technology's role in improving service - The new kitchen display system is expected to enhance order accuracy and improve throughput, positively impacting guest frequency [82] Question: Expectations for restaurant-level margins - Management is focused on sustainable margin expansion while investing in labor and guest experience [92][93]

Financial Data and Key Metrics Changes - CAVA's revenue in Q3 2025 grew 20% year-over-year to $289.8 million and 66.8% compared to Q3 2023 [19] - Same restaurant sales growth was 1.9%, with guest traffic approximately flat [19] - Adjusted EBITDA for Q3 was $40 million, a 19.6% increase versus Q3 2024 [23] - Net income reported was $14.7 million, with diluted EPS at 12 cents [24] - Year-to-date free cash flow was $23.3 million [25] Business Line Data and Key Metrics Changes - CAVA opened 17 net new restaurants, bringing the total to 415 locations [19] - Restaurant-level profit margin was 24.6%, compared to 25.6% in Q3 2024 [20] - Food, beverage, and packaging costs were 30.1% of revenue, reflecting a slight increase due to tariffs and new menu items [20] - Labor costs were 25.5% of revenue, reflecting a 2% wage increase [20] Market Data and Key Metrics Changes - CAVA's same restaurant sales accelerated by 350 basis points to 20% on a two-year basis [19] - The restaurant industry has seen a 7% decline in transactions since 2019, while CAVA has grown transactions in the mid-20s [42] Company Strategy and Development Direction - CAVA aims to expand its Mediterranean cuisine across the U.S. while enhancing guest loyalty and operational integrity [5][8] - The company is focusing on culinary innovation, including the introduction of Chicken Shawarma and a salmon offering [10][11] - CAVA is investing in technology to improve guest experiences, including a new kitchen display system [14][51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic pressures affecting consumer spending but remains confident in the brand's resilience and market share growth [5][26] - The company expects to open 68-70 new restaurants in 2025 and anticipates same restaurant sales growth of 3%-4% [25][27] - Management emphasized the importance of delivering exceptional guest experiences to drive long-term traffic and competitive advantage [33][56] Other Important Information - CAVA's loyalty program has grown by approximately 36% since its relaunch, enhancing guest engagement [12][42] - The company has zero debt and $387.7 million in cash and investments, providing a strong liquidity position [24] Q&A Session Summary Question: Changes in same-store sales dynamics - Management noted that the honeymoon impact remains similar to previous quarters, with macro pressures being the primary concern [29] Question: Performance of the salmon test - The salmon offering has shown broad appeal and is expected to launch more widely in late spring 2026 if current trends continue [31] Question: Leadership changes in operations - The leadership transition was proactive to ensure the company is prepared for future growth and operational integrity [32] Question: Pipeline of traffic-driving initiatives - Management highlighted upcoming innovations in pita chips and catering tests, along with efficient marketing strategies [34] Question: Value perception among non-CAVA users - CAVA's value perception remains strong, supported by biannual brand health surveys and third-party research [47] Question: Technology's impact on throughput and guest frequency - The new kitchen display system has improved order accuracy and guest satisfaction, which correlates with increased sales [52]

Core Insights - CAVA Group, Inc. reported third-quarter earnings that missed analyst expectations, leading to a decline in stock price [1][2] Financial Performance - Quarterly earnings were reported at 12 cents per share, below the consensus estimate of 13 cents [2] - Quarterly revenue was $292.23 million, slightly missing the Street estimate of $292.8 million [2] - Year-over-year revenue growth was 20%, with same restaurant sales growth of 1.9% [5] Operational Highlights - CAVA opened 17 net new restaurants during the quarter [5] - The restaurant-level profit margin was reported at 24.6% [5] - CEO Brett Schulman highlighted continued market share growth and reinforced the company's value proposition [3]

It marks the latest sign of weaker demand for fast-casual restaurants. ...