CAVA (US:CAVA)2025-11-04 23:10Revenue 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].