CAVA (US:CAVA)2025-08-12 22:16Restaurant Operations - CAVA Group, Inc. operated 398 fast-casual restaurants as of July 13, 2025, an increase from 341 restaurants a year earlier, reflecting a net increase of 57 locations[66][73]. - The company opened 16 new CAVA restaurants during the twelve weeks ended July 13, 2025, compared to 18 openings in the same period last year[70][73]. - The company opened 89 net new CAVA restaurants during or subsequent to the twenty-eight weeks ended July 14, 2024[92]. Financial Performance - CAVA revenue for the twelve weeks ended July 13, 2025, was $278.2 million, a 20.3% increase from $231.4 million in the same period last year[70][76]. - Revenue for the twenty-eight weeks ended July 13, 2025, was $612.4 million, up 24.3% from $492.5 million for the same period in 2024[111]. - CAVA segment revenue for the twenty-eight weeks ended July 13, 2025, was $606,731, a 24.4% increase from $487,674[91]. - Adjusted EBITDA for the twelve weeks ended July 13, 2025, was $42.1 million, up from $34.3 million in the prior year, reflecting a margin of 15.0%[70][72]. - Adjusted EBITDA for the twelve weeks ended July 13, 2025, was $42.1 million, representing a 22.6% increase from $34.3 million for the same period in 2024[111]. - The Adjusted EBITDA margin for the twenty-eight weeks ended July 13, 2025, was 14.2%, an increase from 13.7% in the same period of 2024[111]. Profitability Metrics - CAVA's restaurant-level profit margin was 26.3% for the twelve weeks ended July 13, 2025, slightly down from 26.5% in the same period last year[70][76]. - Net income for the twelve weeks ended July 13, 2025, was $18.4 million, compared to $19.7 million in the same period last year, resulting in a net income margin of 6.5%[70][76]. - Net income decreased to $18,368, a decline of 7.0% from $19,741, with the net income margin at 6.5%[83]. - Adjusted Net Income for the twelve weeks ended July 13, 2025, was $18.4 million, compared to $16.8 million for the same period in 2024[111]. Cost and Expenses - Total restaurant operating expenses increased to $205,934, up 20.3% from $171,135, with food, beverage, and packaging costs rising by 20.5% to $82,950[83]. - CAVA's food, beverage, and packaging costs increased by $14.2 million due to new restaurant openings and input costs associated with new menu items[77][78]. - General and administrative expenses rose to $73,445, an 18.2% increase from $62,121, primarily due to investments for future growth[99]. - Depreciation and amortization increased by 21.2% to $37,626, driven by new restaurant openings and technology improvements[99]. Digital and Consumer Revenue - CAVA's digital revenue mix increased to 37.3% for the twelve weeks ended July 13, 2025, up from 35.8% in the prior year[70]. - CAVA's consumer-packaged goods revenue increased by 12.1% to $2.4 million for the twelve weeks ended July 13, 2025, driven by higher sales[82]. Cash Flow and Investments - Net cash provided by operating activities increased by $11.6 million, or 13.3%, to $98.9 million for the twenty-eight weeks ended July 13, 2025[116]. - Cash and cash equivalents decreased to $290.2 million as of July 13, 2025, from $366.1 million as of December 29, 2024[115]. - The company had net cash used in investing activities of $177.4 million for the twenty-eight weeks ended July 13, 2025, a significant increase of 196.3% compared to $59.9 million in the prior year[116]. - The increase in cash used in investing activities was primarily due to higher capital expenditures related to new CAVA restaurant openings[118]. Taxation - The effective tax rate for the twelve weeks ended July 13, 2025, was 22.5%, significantly higher than 1.4% in the prior year due to a reduction in income tax expense associated with equity-based compensation[90]. - The effective income tax rate for the twenty-eight weeks ended July 13, 2025, was insignificant due to a $12.4 million reduction in income tax expense related to equity-based compensation[107].