CAVA (US:CAVA)2025-02-25 23:04Financial Performance - Total revenue for the fiscal year ended December 29, 2024, was $963,713,000, representing a 32.2% increase from $728,700,000 in the previous year [374]. - Net income for the fiscal year ended December 29, 2024, was $130,319,000, a significant increase from $13,280,000 in the prior year [374]. - Basic earnings per share for the fiscal year ended December 29, 2024, was $1.14, compared to $0.22 in the previous year [374]. - Total operating expenses for the fiscal year were $920,595,000, an increase from $723,975,000, reflecting a rise of 27.1% [374]. - The Company’s total revenue for fiscal 2024 was $963.7 million, a 32.2% increase from $728.7 million in fiscal 2023 and a 70.8% increase from $564.1 million in fiscal 2022 [429]. - Restaurant revenue reached $954.3 million in fiscal 2024, up 32.3% from $720.9 million in fiscal 2023 and up 71.3% from $557.0 million in fiscal 2022 [429]. - CAVA segment revenue increased to $954,273, up 33% from $717,060 in 2023 [474]. - Total consolidated revenue reached $963,713, a 32% increase compared to $728,700 in 2023 [474]. - CAVA segment restaurant-level profit rose to $238,113, reflecting a 34% increase from $177,488 in 2023 [474]. - Income before taxes for the company was $59,910, compared to $14,048 in 2023, showing significant improvement [474]. Assets and Equity - Total assets increased to $1,169,669,000 as of December 29, 2024, compared to $983,757,000 at the end of the previous year, reflecting a growth of 19% [371]. - Total stockholders' equity rose to $695,566,000, up from $570,802,000, indicating a 21.9% increase year-over-year [371]. - Cash and cash equivalents increased to $366,120,000 from $332,428,000, showing a growth of 10.1% [371]. - Trade accounts receivable increased to $4,799,000 from $3,662,000, a rise of 31% [371]. - The net property and equipment increased to $372.902 million as of December 29, 2024, from $330.730 million as of December 31, 2023, reflecting growth in leasehold improvements and equipment [434]. Cash Flow - Net cash provided by operating activities reached $161.0 million, compared to $97.1 million in 2023 and $6.0 million in 2022, indicating strong operational cash flow growth [380]. - The company reported a net cash used in investing activities of $108.1 million in 2024, compared to $138.8 million in 2023 [380]. Tax and Valuation - The company fully released the valuation allowance against deferred tax assets of $83.7 million in the fiscal year ended December 29, 2024, with deferred tax assets amounting to $71.5 million [358]. - The total net deferred tax assets as of December 29, 2024, amounted to $71.537 million, compared to a net liability of $79,000 in 2023 [445]. - The Company recorded a full valuation against its deferred tax assets as of December 31, 2023, which was released in fiscal 2024 [411]. Expenses and Costs - General and administrative expenses increased to $120,500, up 19% from $101,491 in 2023 [474]. - Advertising and marketing costs totaled $8.8 million in fiscal 2024, an increase from $6.1 million in fiscal 2023 and $7.1 million in fiscal 2022 [408]. - Operating lease costs for fiscal 2024 were $59.090 million, an increase from $50.361 million in fiscal 2023 [447]. - Total impairment and asset disposal costs for fiscal 2024 were $5.055 million, compared to $4.899 million in fiscal 2023 and $19.753 million in fiscal 2022 [433]. Market Presence and Expansion - The company operated 367 CAVA Restaurants across 25 states and Washington, D.C. as of December 29, 2024, reflecting continued expansion in the fast-casual dining sector [384]. - The Company plans to continue expanding its market presence and investing in new product development to sustain growth [374]. - The Company completed the conversion of all Zoes Kitchen restaurants to CAVA restaurants, totaling 153 conversions, with the last conversion opening on October 20, 2023 [471]. Employee Compensation - The company’s equity-based compensation increased to $13.6 million in 2024 from $9.4 million in 2023, reflecting growth in employee incentives [380]. - The Company recognized equity-based compensation expenses of $17.1 million in fiscal 2024, up from $9.6 million in fiscal 2023 and $4.0 million in fiscal 2022 [461]. Legal and Regulatory - The Company is involved in various legal claims but does not expect any material impact on its financial condition from these proceedings [452]. - The Company is evaluating the impact of recently issued accounting standards on its financial statements and disclosures, including ASU 2023-09 and ASU 2024-03 [426][427]. Risk Factors - CAVA is exposed to interest rate risk, with a hypothetical decrease of 100 basis points potentially resulting in a decrease of $3.6 million in investment income over a twelve-month period [350]. - Labor costs are influenced by changes in federal and state minimum wage rates, with the company currently paying all team members above the applicable minimum wage [345]. - The company aims to offset wage increases through operational efficiencies and leveraging same restaurant sales growth, but these measures may not fully mitigate wage inflation [346]. - CAVA's restaurant leases include contingent rent obligations based on a percentage of sales, which may limit the effectiveness of menu price increases [348].