Core Insights - CAVA Group, Inc. reported strong first-quarter fiscal 2025 results, with earnings and revenues exceeding expectations, showing year-over-year growth [1][2] Financial Performance - Adjusted earnings per share (EPS) for the quarter were 22 cents, surpassing the consensus estimate of 14 cents, and up from 10 cents in the prior-year quarter [2] - Quarterly revenues reached $331.8 million, exceeding the consensus mark by 0.4% and reflecting a 28.1% increase year-over-year, driven by a 10.8% rise in same-restaurant sales and contributions from 73 new restaurant openings [2] Operating Highlights - General and administrative expenses were $41.4 million, representing 12.5% of revenues, down from 13.1% in the prior-year quarter [3] - Excluding equity-based compensation, these expenses were $34.7 million (10.5% of revenues), compared to $28.7 million (11.1%) in the same period last year, with a 60 basis point improvement attributed to sales leverage [4] Profitability Metrics - Adjusted EBITDA was reported at $44.9 million, an increase from $33.9 million in the prior-year quarter, with an adjusted EBITDA margin of 13.5% compared to 12.9% previously [5] - Restaurant-level profit margin was 25.1%, slightly down from 25.2% in the first quarter of fiscal 2024, impacted by higher input costs and wage investments, partially offset by higher sales leverage [6] Balance Sheet - As of April 30, 2025, cash and cash equivalents stood at $289.4 million, down from $366.1 million as of December 29, 2024, while total liabilities increased to $502.2 million from $474.1 million [7] Fiscal 2025 Outlook - CAVA plans to open 64-68 net new restaurants, an increase from the previous range of 62-66, with same-restaurant sales growth expected between 6-8% [8] - The anticipated restaurant-level profit margin is projected to be between 24.8% and 25.2%, with pre-opening costs estimated at $14.5 million to $15.5 million [9]

Cava Group (CAVA) reported $331.83 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 28.1%. EPS of $0.22 for the same period compares to $0.12 a year ago.The reported revenue represents a surprise of +0.36% over the Zacks Consensus Estimate of $330.64 million. With the consensus EPS estimate being $0.14, the EPS surprise was +57.14%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

Cava Group (CAVA) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 57.14%. A quarter ago, it was expected that this Mediterranean restaurant chain would post earnings of $0.06 per share when it actually produced earnings of $0.05, delivering a surprise of -16.67%.Over the last four qua ...

Financial Data and Key Metrics Changes - Revenue in Q1 2025 grew 28.2% year over year to $328.5 million [21] - Same restaurant sales increased by 10.8%, driven by a traffic growth of 7.5% [21] - Adjusted EBITDA for the quarter was $44.9 million, a 34.6% increase compared to Q1 2024 [24] - Net income reached $25.7 million, an 83.7% increase over Q1 2024 [25] - Free cash flow for the quarter was $2.7 million [27] Business Line Data and Key Metrics Changes - Cava restaurant level profit was $82.3 million, representing 25.1% of revenue, compared to 25.2% in Q1 2024 [22] - The company opened 15 net new restaurants, bringing the total to 382 [21] Market Data and Key Metrics Changes - The company expanded its footprint to 26 states and the District of Columbia, entering Indiana and deepening its presence in Florida [9][10] - The performance in new markets, such as Indianapolis and South Florida, has exceeded expectations [78] Company Strategy and Development Direction - The company aims to reach at least 1,000 restaurants by 2032, focusing on community connection and Mediterranean hospitality [10] - The "Project Soul" initiative aims to enhance the in-restaurant experience through design improvements [10] - The company is launching a "Spice World" campaign to celebrate bold flavors while maintaining health-conscious offerings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's resilience despite macroeconomic uncertainties [6] - The company anticipates same restaurant sales growth of 6% to 8% for the full year 2025 [27] - Management noted strong consumer demand across all geographies and income strata, with no significant weakness observed [72] Other Important Information - The company has zero debt and $369.4 million in cash and investments, with access to a $75 million undrawn revolver [26] - The loyalty program has seen strong engagement, with nearly 8 million members and a 340 basis point increase in revenue from the program [15][36] Q&A Session Summary Question: Can you expand on the loyalty program and its engagement drivers? - Management noted a shift from a transaction-based model to a points-based system, which has increased engagement and participation [35] Question: What is the impact of the KDS rollout on throughput? - Management indicated that the new kitchen display systems enhance order management capabilities and improve order accuracy [39] Question: How is the brand performing in new markets? - Management reported strong performance in new markets, with restaurants in Indiana and South Florida exceeding expectations [78] Question: What is the outlook for restaurant margins? - Management highlighted that improved average unit volumes (AUV) contribute to margin expansion, while also focusing on reinvestment in team members and guest experience [56] Question: What are the expectations for menu innovation? - Management confirmed plans for a new protein introduction later in the year, indicating ongoing innovation efforts [48]

Financial Performance - CAVA's revenue for the sixteen weeks ended April 20, 2025, was $328,482,000, representing a 28.2% increase from $256,290,000 in the same period of 2024[65] - Net income for the sixteen weeks ended April 20, 2025, was $25,707,000, an increase of 83.7% compared to $13,993,000 in the prior year[78] - Adjusted EBITDA for the period was $44,850,000, up from $33,317,000, reflecting an increase of 34.4%[65] - Revenue for the sixteen weeks ended April 20, 2025, was $331.8 million, an increase of 28.1% compared to $259.0 million for the same period in 2024[89] - Adjusted EBITDA for the same period was $44.9 million, up 34.5% from $33.3 million in the prior year[89] - Net income margin improved to 7.7% for the sixteen weeks ended April 20, 2025, compared to 5.4% in the same period of 2024[89] Restaurant Expansion - The number of CAVA restaurants increased to 382 from 323, with 15 new openings during the period[65] - The company opened 73 new CAVA restaurants during or subsequent to the sixteen weeks ended April 21, 2024, contributing to increased revenue and expenses[81] Cost and Expenses - CAVA's food, beverage, and packaging costs increased by 33.3% to $96,224,000, primarily due to new restaurant openings and input costs[71] - General and administrative expenses rose by 22.3% to $41,394,000, reflecting increased operational costs[78] - The increase in general and administrative expenses was primarily due to investments for future growth and higher equity-based compensation[80] - Restaurant-level profit margin was 25.1%, slightly down from 25.2% in the prior year[65] Digital Revenue and Guest Traffic - CAVA same restaurant sales growth was 10.8%, driven by a 7.5% increase in guest traffic and a 3.3% increase from menu price and product mix[72] - CAVA's digital revenue mix accounted for 38.0% of total revenue, up from 37.0% in the previous year[65] Cash Flow and Investments - Cash and cash equivalents decreased to $289.4 million as of April 20, 2025, down from $366.1 million as of December 29, 2024[92] - Net cash provided by operating activities was $38.6 million for the sixteen weeks ended April 20, 2025, a slight increase of 0.5% from $38.4 million in the prior year[93] - Net cash used in investing activities rose significantly to $115.8 million, an increase of 243.9% compared to $33.7 million in the same period of 2024[93] Tax and Future Outlook - The effective income tax rate for the sixteen weeks ended April 20, 2025, was a benefit of 26.3%, significantly higher than the prior year's rate of 1.8%[85] - The company believes that cash provided by operating activities and existing cash on hand will be sufficient to meet anticipated cash requirements for the next twelve months[91] - The company plans to continue expanding its restaurant footprint and enhancing its product offerings to drive future growth[61]

Financial Data and Key Metrics Changes - Revenue in Q1 2025 grew by 28.2% year over year to $328.5 million [19] - Same restaurant sales increased by 10.8%, driven by a traffic growth of 7.5% [19] - Adjusted EBITDA for the quarter was $44.9 million, a 34.6% increase compared to Q1 2024 [22] - Net income reached $25.7 million, an 83.7% increase from the previous year [23] - Free cash flow for the quarter was $2.7 million [24] Business Line Data and Key Metrics Changes - Cava opened 15 net new restaurants, bringing the total to 382 [19] - Restaurant-level profit was $82.3 million, representing 25.1% of revenue, compared to 25.2% in Q1 2024 [20] - Food, beverage, and packaging costs were 29.3% of revenue, an increase of 110 basis points year over year [20] Market Data and Key Metrics Changes - The company expanded its footprint to 26 states and the District of Columbia, entering Indiana and deepening its presence in Florida [8][9] - New market entries are planned for Detroit and Pittsburgh [9] Company Strategy and Development Direction - The company aims to reach at least 1,000 restaurants by 2032, focusing on community connection and Mediterranean hospitality [9] - The "Project Soul" initiative aims to enhance the in-restaurant experience through design improvements [9] - The company is launching a "Spice World" campaign to celebrate bold, spicy offerings [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's resilience despite macroeconomic uncertainties [5] - The company anticipates same restaurant sales growth of 6% to 8% for the full year [25] - Management noted strong performance across all geographies and income strata, with no significant weaknesses observed [44][70] Other Important Information - The company has zero debt and $369.4 million in cash and investments [24] - The loyalty program has seen strong engagement, with nearly 8 million members [13] Q&A Session Summary Question: Expansion on loyalty and tiered structure - Management highlighted the success of the loyalty program and plans to introduce a tiered structure to enhance engagement [31][33] Question: Impact of KDS on throughput - Management noted that the new kitchen display systems improve order management and accuracy, with plans to expand the rollout [36][38] Question: Performance in new markets - Management reported strong results in new markets like Indiana and Miami, indicating successful brand expansion [76] Question: Menu innovation and chicken shawarma test - Management confirmed positive consumer reception for the chicken shawarma test, with plans for broader rollout if successful [51][53] Question: Restaurant margin and reinvestment - Management emphasized the importance of reinvesting in team members and maintaining competitive pricing to support traffic momentum [55][57]

Core Insights - Cava's fiscal 2025 Q1 financial report shows strong revenue and earnings growth, exceeding expectations [2][3] - The company faces margin pressures due to rising food costs, impacting restaurant-level profit margins [4] - Future same-restaurant sales growth is projected to decelerate, with guidance set between 6% to 8% [5] Financial Performance - Revenue increased from $256.3 million in Q1 2024 to $328.5 million in Q1 2025, a 28% year-over-year growth [2][3] - Earnings per share rose from $0.12 to $0.22, marking an 83% increase [2] - Adjusted EBITDA improved from $33.3 million to $44.9 million, a 35% increase [2] Operational Metrics - The number of restaurants grew from 323 to 382, an 18% increase [2] - Same-restaurant sales increased by nearly 11%, indicating strong operational momentum despite new store openings [3] Margin Analysis - Restaurant-level profit margin decreased by 10 basis points to 25.1% due to higher food costs, particularly from the introduction of grilled steak [4] Future Outlook - Cava maintains its full-year guidance for same-restaurant sales growth of 6% to 8%, which is below the analyst consensus estimate of 8.4% [5] - The company plans to open two additional new restaurants, slightly raising its adjusted EBITDA forecast [5] Market Reaction - The initial market reaction to the earnings report was slightly negative, with shares dropping over 3% in after-hours trading [6] - The stock movement may be influenced by management's comments during the conference call [7] Key Metrics to Watch - Same-restaurant sales growth will be a critical metric, as new restaurant openings may distort actual growth momentum [8] - Economic conditions in the U.S. could impact customer traffic and sales growth moving forward [8]

Financial Performance - CAVA's revenue reached $328.5 million in Q1 2025, a 28.2% increase compared to Q1 2024[9, 12] - Same Restaurant Sales (SRS) grew by 10.8% in Q1 2025[9, 15] - CAVA experienced a 7.5% increase in traffic[9, 22] - Restaurant-Level Profit Margin was 25.1% in Q1 2025[9, 17, 21] - Total Company Adjusted EBITDA was $44.9 million, a 34.6% increase compared to Q1 2024[9] - Total Company Net Income was $25.7 million, a 115.3% increase compared to Q1 2024[9] - Free Cash Flow was $2.7 million in Q1 2025, with Cash from Operations at $38.6 million[9] Expansion and Outlook - CAVA opened 15 net new restaurants in Q1 2025, representing an 18.3% year-over-year increase in total CAVA restaurants[14, 22] - The company anticipates opening 64-68 net new restaurants in 2025[33] - CAVA projects Same Restaurant Sales Growth of 6.0%-8.0% for the fiscal year 2025[33] - CAVA expects a Restaurant Level Profit Margin of 24.8%-25.2% for fiscal year 2025[33]

Exhibit 99.1 CAVA GROUP REPORTS FIRST QUARTER 2025 RESULTS YEAR OVER YEAR CAVA REVENUE GROWTH OF 28.2% INCLUDING CAVA SAME RESTAURANT SALES GROWTH OF 10.8% 15 NET NEW CAVA RESTAURANT OPENINGS DURING QUARTER FIRST QUARTER 2025 CAVA RESTAURANT-LEVEL PROFIT MARGIN OF 25.1% WASHINGTON, D.C. (May 15, 2025) - CAVA Group, Inc. (NYSE: CAVA) ("CAVA Group" or the "Company"), the category- defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced financial res ...

Core Insights - Cava reported better-than-expected sales in its latest fiscal quarter, with same-store sales growing 10.8%, surpassing analysts' expectations of 10.3% [1][6] - The company experienced positive traffic growth of 7.5% across all geographies and income cohorts, indicating a shift in consumer behavior towards its offerings [2][3] Financial Performance - Cava's fiscal first-quarter net income reached $25.71 million, or 22 cents per share, up from $13.99 million, or 12 cents per share, a year earlier [6] - Net sales increased by 28% to $332 million, with revenue surpassing $1 billion on a 12-month trailing basis, marking a significant milestone for the company [7] - The company raised its adjusted EBITDA forecast to between $152 million and $159 million, up from the previous range of $150 million to $157 million [8] Market Position and Outlook - Despite strong quarterly performance, Cava maintained its same-store sales forecast of a 6% to 8% increase, anticipating slower growth in the latter half of fiscal 2025 [5] - The company plans to open 64 to 68 new locations, an increase from its prior outlook of 62 to 66 openings [8] - Cava's stock fell 5% in extended trading, reflecting investor concerns over its conservative outlook and economic factors [5]