Core Insights - Cava Group (CAVA) reported a revenue of $227.4 million for the quarter ended December 2024, reflecting a year-over-year increase of 28.4% [1] - The earnings per share (EPS) for the quarter was $0.05, up from $0.02 in the same quarter last year, although it fell short of the consensus estimate of $0.06 by 16.67% [1] - The revenue exceeded the Zacks Consensus Estimate of $225.54 million by 0.82% [1] Financial Performance - Same Restaurant Sales Growth was reported at 21.2%, surpassing the estimated 18.3% by analysts [4] - The total number of CAVA restaurants at the end of the period was 367, slightly above the average estimate of 366 [4] - CAVA opened 15 new restaurants, including converted Zoes Kitchen locations, matching the average estimate [4] - Revenue from CAVA restaurants was $225.10 million, exceeding the average estimate of $223.32 million, representing a year-over-year change of 28.3% [4] - Restaurant-Level profit was reported at $50.41 million, which was below the estimated $55.16 million [4] Stock Performance - Cava's shares have declined by 15.3% over the past month, compared to a 1.8% decline in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Viewpoint - Cava Group reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.06 per share, but showing improvement from $0.02 per share a year ago, indicating a -16.67% earnings surprise [1] Financial Performance - Cava's revenues for the quarter ended December 2024 were $227.4 million, surpassing the Zacks Consensus Estimate by 0.82%, and up from $177.17 million year-over-year [2] - Over the last four quarters, the company has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Cava shares have declined approximately 7.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [3] - The current Zacks Rank for Cava is 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $339.56 million, and for the current fiscal year, it is $0.61 on revenues of $1.2 billion [7] - The estimate revisions trend for Cava is mixed, which could change following the recent earnings report [6] Industry Context - The Retail - Restaurants industry, to which Cava belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 29, 2024 (Address of principal executive offices) (Zip Code) 202-400-2920 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 001-41721 CAVA Group, Inc. (Exact name of registrant as sp ...

Revenue Growth - CAVA revenue grew 33.1% to $954.3 million compared to $717.1 million in the prior year, with a 35.1% increase excluding the 53rd week of fiscal 2023[10] - Revenue for the twelve weeks ended December 29, 2024, was $227,395,000, a 28.4% increase from $177,170,000 for the same period in 2023[27] - The company opened 15 new CAVA restaurants in the thirteen weeks ended December 29, 2024, compared to 19 in the same period of 2023[32] Same Restaurant Sales - CAVA same restaurant sales growth was 13.4%, driven by 8.7% from guest traffic and 4.7% from menu price and product mix[11] - CAVA's same restaurant sales growth for Q4 2024 was 21.2%, up from 11.4% in Q4 2023[29] Restaurant Openings - CAVA opened 58 net new restaurants during fiscal 2024, bringing the total to 367, an 18.8% year-over-year increase[5] - CAVA anticipates 62 to 66 net new restaurant openings for fiscal 2025, with same restaurant sales growth projected at 6.0% to 8.0%[15] - CAVA opened 15 new restaurants in Q4 2024, bringing the total to 367 locations[29] Profitability and Margins - CAVA restaurant-level profit margin was 25.0%, a 20 basis point increase over the prior year, attributed to higher sales and increased input costs[12] - The restaurant-level profit margin for CAVA in Q4 2024 was 22.4%, consistent with the previous year[29] Income and Earnings - CAVA group net income reached $130.3 million, compared to $13.3 million in the prior year, with adjusted net income of $50.2 million excluding the VA release[13] - CAVA's net income for the twelve weeks ended December 29, 2024, was $78,619,000, compared to $2,049,000 for the same period in 2023[27] - Adjusted Diluted Earnings Per Share for the fiscal year ended December 29, 2024, was $0.42, compared to $0.11 in 2023, representing a 281.8% increase[35] EBITDA - CAVA adjusted EBITDA was $126.2 million, a 71.0% increase compared to the prior year, representing 13.1% of revenue[13] - Adjusted EBITDA for the fiscal year ended December 29, 2024, was $130,319,000, compared to $13,280,000 for the fiscal year ended December 31, 2023[27] - Adjusted EBITDA for the fiscal year ended December 29, 2024, reached $126,248 thousand, compared to $73,825 thousand in 2023, marking a 71.2% increase[33] Expenses - General and administrative expenses were $120.5 million, or 12.5% of revenue, down from 13.9% in the prior year, reflecting operational leverage[13] - General and administrative expenses for the fiscal year ended December 29, 2024, were $120,500,000, compared to $101,491,000 in the prior year, representing an increase of 18.8%[27] - General and administrative expenses as a percentage of revenue decreased to 12.6% for the twelve weeks ended December 29, 2024, from 13.9% in 2023[34] Cash Flow and Assets - Cash and cash equivalents increased to $366,120 thousand in 2024 from $332,428 thousand in 2023, representing a growth of 10.1%[32] - Total assets grew to $1,169,669 thousand in 2024, up from $983,757 thousand in 2023, indicating a 19.0% increase[32] - Free Cash Flow for the fiscal year ended December 29, 2024, was $52,896 thousand, a turnaround from a negative $41,705 thousand in 2023[38] Other Highlights - The company highlighted the successful conversion and winding down of Zoes Kitchen operations, with the last conversion restaurant opening on October 20, 2023[27] - The total stockholders' equity increased to $695,566 thousand in 2024 from $570,802 thousand in 2023, showing a growth of 21.9%[32]

Group 1: CAVA Group Inc - CAVA is currently trading at $104.37, down 3.3%, marking its lowest level since December and on track for a fourth consecutive loss [2] - The stock experienced a significant weekly drawdown of 17.5%, the worst performance of the year, but still shows a year-over-year gain of 105.2% [2] - Historically, CAVA has a positive post-earnings reaction, with four out of five sessions finishing higher, averaging a move of 7.4%, while options are pricing in a larger swing of 20.6% for the upcoming earnings report [2] Group 2: Sweetgreen Inc - Sweetgreen is trading at $23.22, up 6.4%, indicating its best single-day percentage gain since November [3] - The shares are recovering from a pullback to their lowest level since May, maintaining a year-over-year lead of 103.8% [3] - Sweetgreen typically performs well after earnings, with five out of the last eight quarters seeing higher settlement, averaging a move of 24.3% over the past two years, while options are pricing in a smaller move of 17.4% this time [3] Group 3: Chipotle Mexican Grill, Inc. - Chipotle is trading at $51.41, down 0.2%, and has dropped 18.5% over the last nine months [4] - The stock is on track for a sixth consecutive loss, following a third straight weekly drop, and is currently at its lowest level since August [4] - Chipotle has struggled to overcome resistance at the $60 level, which has been in place since January [4]

Company Overview - Cava Group has seen significant stock performance since its public debut in early 2023, with a 122% increase over the past year, although it may be losing momentum as it approaches its earnings report on February 25 [1] - The company operates in the fast-casual restaurant sector, aiming to replicate the success of Chipotle Mexican Grill, focusing on fresh, premium Mediterranean fare with customizable options [2] Growth Potential - As of the end of Q3, Cava operated 352 stores and plans to open approximately 57 new stores in 2024, with a long-term goal of reaching about 1,000 stores by 2030, indicating steady growth potential [3] - The company has reported impressive comparable sales growth, with total revenue increasing by 39% year over year and comparable sales up by 18% in Q3 [5] Financial Performance - Cava has shown positive net income since its first quarter as a public company, with net income rising from $6.8 million to $18 million in Q3 [4][5] - The restaurant-level profit margin improved from 25.1% to 25.6%, and management has raised its outlook for Q4 to approximately 12.5% comparable sales growth and a profit margin of 24.5% to 25% [5] Market Valuation - Cava's stock trades at a forward price-to-earnings (P/E) ratio of 134, which is considered high for a non-tech company, suggesting limited near-term upside potential [8] - The stock has experienced a decline in the weeks leading up to the earnings report, reflecting investor caution regarding high expectations built into the current valuation [6][9] Future Outlook - If Cava delivers strong earnings on February 25, the stock is likely to rise, but any disappointing results could lead to a decline, highlighting the risks associated with its high valuation [9] - The company is expected to maintain steady and strong growth over the next five to ten years, making it a potential long-term investment despite current high prices [10]

Core Viewpoint - CAVA Group, Inc. is expected to report strong fourth-quarter 2024 results, driven by expansion efforts and innovative menu offerings, despite facing valuation concerns and a recent stock decline [1][16][17]. Financial Performance - CAVA's fourth-quarter earnings per share (EPS) estimate remains at 6 cents, reflecting a 200% increase from the previous year's EPS of 2 cents [2]. - Revenue consensus for the quarter is projected at $225.5 million, indicating a year-over-year growth of 27.3% [2]. - Same-restaurant sales are estimated to grow by 18.3%, with total restaurant sales expected to reach $223 million, representing a 27.4% increase year-over-year [10]. Growth Drivers - The company's ongoing expansion into new markets, including South Florida and additional Midwest regions, is expected to enhance its growth trajectory [5]. - CAVA's average unit volumes (AUV) are on the rise, showcasing the effectiveness of its expansion strategy [6]. - Culinary innovation, including successful new menu items, has contributed to increased sales and customer engagement [7]. - The nationwide rollout of a loyalty program has positively impacted sales by enhancing customer relationships and increasing visit frequency [8]. Operational Efficiency - CAVA is focusing on operational efficiency through technology and modern labor models, which have improved restaurant performance and guest experience [9]. - Early testing of AI-powered kitchen tools indicates potential for improved productivity and faster service times [9]. Stock Performance and Valuation - CAVA's stock has increased by 137.2% over the past year, outperforming industry peers and the broader market [11]. - However, the stock has declined by 18.2% in the last three months, contrasting with a 2% rise in the industry [14]. - CAVA's forward 12-month price-to-sales ratio is 10.98, significantly higher than the industry average and the S&P 500's 5.39, raising concerns about overvaluation [14][17].

Wall Street analysts forecast that Cava Group (CAVA) will report quarterly earnings of $0.06 per share in its upcoming release, pointing to a year-over-year increase of 200%. It is anticipated that revenues will amount to $225.54 million, exhibiting an increase of 27.3% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Pr ...

The S&P 500 has risen about 20% over the past 12 months, which is a very strong performance. Cava Group's (CAVA 0.44%) stock price has rallied 160% over the same span. There's a lot to digest about that eye-popping share price advance when you consider the buy, sell, or hold call on this upstart restaurant concept.Buy Cava GroupLet's start with the good news: Cava is a Mediterranean-themed restaurant that uses an assembly line-style preparation system. It cooks the food in a kitchen behind the counter, so c ...

Group 1 - Cava Group (CAVA) closed at $140.62, with a +1.6% change from the previous day, outperforming the S&P 500's daily gain of 0.67% [1] - The stock has gained 20.22% over the past month, while the Retail-Wholesale sector gained 7.15% and the S&P 500 gained 2.07% [1] - The upcoming earnings release on February 25, 2025, is projected to show an EPS of $0.06, a 200% increase year-over-year, with revenue estimated at $225.54 million, up 27.3% from the prior-year quarter [2] Group 2 - Recent changes to analyst estimates for Cava Group reflect short-term business trends, with upward revisions indicating analysts' positive outlook on the company's operations [3] - The Zacks Rank system, which evaluates estimated changes, currently ranks Cava Group at 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [5] - Cava Group's Forward P/E ratio is 225.3, significantly higher than the industry's average Forward P/E of 24.04, indicating a premium valuation [6] Group 3 - The Retail - Restaurants industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 56, placing it in the top 23% of over 250 industries [6][7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]