CAVA Group (NYSE:CAVA) Q4 2025 Earnings call February 24, 2026 05:00 PM ET Speaker13Good afternoon, ladies and gentlemen, and welcome to the CAVA Q4 and full year 2025 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, February 24th, 2026. I would now like to turn t ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公布的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公布全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 (於開曼群島註冊成立之有限公司) (股份代號: 8371) 自願性公告 在香港開設一間新牛氣餐廳 及新悅見餐廳 所訂立之租賃協議 本公告乃由嚐‧高美集團有限公司（「本公司」）自願作出，旨在向本公司股東及潛在投資者提 供本公司及其附屬公司（「本集團」）最新業務計劃及發展的最新資料。 新租賃協議之基本條款如下： 預計新餐廳將於2026年第三季度開始營業。 - 1 - 本公司之董事會（「董事會」或「董事」）欣然宣布，本集團已透過其全資附屬公司簽訂了一 份新的租賃協議（「新租賃協議」），在香港開設一間新的牛氣餐廳及新的悅見餐廳（「新餐廳」）。 新租賃協議仍有待業主執行。 業主為香港主要物業發展商及高級購物中心營運商。據董事經作出一切合理查詢後所知、所 悉及所信，於本公告日期，業主為獨立於本公司的第三方（定義見香港聯合交易所有限公司 （「港交所」）GEM證券上市規則（「GEM上市規則」））。 新餐廳：牛氣餐廳及新悅 ...

Financial Data and Key Metrics Changes - Adjusted EBITDA improved by approximately $150,000 compared to the previous year [8] - Cash balance stands at over $9 million, with total debt at $3 million, indicating a stable balance sheet [8] Business Line Data and Key Metrics Changes - Las Vegas operations are performing well despite a general decline of 11% on the Strip, with improved efficiency noted [11] - Full-service restaurants in Florida are experiencing a revenue decline of 10-13%, leading to squeezed margins [12] - Hollywood fast food at Hard Rock continues to perform exceptionally well [12] - New management at Sequoia in Washington is showing promise, with signs of improvement [12] Market Data and Key Metrics Changes - Alabama's market conditions are stable, while Florida has faced significant challenges due to unusually cold weather, impacting revenues by as much as 40% in some locations [26][28] - New York's Bryant Park location is still affected by ongoing litigation, but there are signs of potential recovery in event business [12][13] Company Strategy and Development Direction - The company is focused on improving operational efficiency rather than significantly raising prices, with some menu reengineering to reduce costs [20] - There are ongoing efforts to explore expansion opportunities in Las Vegas [11] - The company is conducting surveys regarding public support for a casino in the Meadowlands, which could influence future operations [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of inflation on expenses, despite efforts to maintain efficiency [12] - The company expects cash flow to improve following the completion of the America build-out [10] - Management is optimistic about the potential for increased event business in Bryant Park despite current challenges [13] Other Important Information - The company is in a litigation process regarding Bryant Park, with management expressing confidence in their position based on recent discoveries [40] - There may be dilution of ownership in the Meadowlands casino project, but the company retains exclusive rights to food and beverage operations [43] Q&A Session Summary Question: Impact of cost reductions on traffic - Management noted that while costs have decreased, it is difficult to determine the exact impact on traffic due to various external factors [19] Question: Clarification on Bryant Park litigation - Management believes they are in a strong position due to beneficial findings during the discovery process, although the outcome remains uncertain [40] Question: Ownership dilution in Meadowlands - Management indicated that while there may be dilution based on the deal made with an operator, exclusive rights to food and beverage will remain unaffected [43]

Core Insights - McDonald's has opened its new flagship restaurant in Shanghai, marking the 600th location in the city and contributing to a total of over 7,700 restaurants nationwide [1] - The company served over 1.4 billion customers last year, indicating strong consumer engagement and market presence [1] - McDonald's plans to expand its footprint significantly, aiming to exceed 10,000 locations by 2028 with an annual target of opening 1,000 new restaurants [1]

Core Viewpoint - The company has signed a new lease agreement through its wholly-owned subsidiary to open a new Jin Long Teppanyaki restaurant in Hong Kong, pending execution by the landlord [1] Group 1 - The new lease agreement is with a major property developer and high-end shopping mall operator in Hong Kong [1] - The landlord is an independent third party, as confirmed by the company's board after reasonable inquiries [1]

Group 1 - Chipotle Mexican Grill, Inc. is aggressively expanding its restaurant openings in both domestic and international markets as part of its long-term growth strategy [1][8] - The company emphasizes maintaining high-quality ingredients and culinary consistency while scaling operations, with positive consumer feedback indicating success in balancing speed and quality [2][4] - Brand equity is supported by strong loyalty programs, digital engagement, and successful limited-time offerings, with international ventures being developed to replicate U.S. operational standards [3][8] Group 2 - Competitors like Sweetgreen, Inc. and Shake Shack Inc. are also expanding in the fast-casual dining sector, focusing on health-conscious menus and premium ingredients, respectively [5][6] - Both competitors face similar challenges in sustaining food quality and customer experience while scaling quickly, highlighting the competitive pressures in the fast-casual sector [7]

Core Viewpoint - The Green Tea Group reported a strong performance in the first half of 2025, with revenue and profit growth driven by an increase in takeout business and store expansion [2][4]. Financial Performance - Green Tea's revenue for the first half of 2025 reached 2.29 billion RMB, a year-on-year increase of 23.1% [2][6]. - The adjusted net profit was 251 million RMB, reflecting a 40.4% increase compared to the previous year [2][6]. - Takeout revenue amounted to 524 million RMB, a significant increase of 74.2% from 300 million RMB in the same period last year, contributing to 22.9% of total revenue [4][6]. Operational Challenges - Despite revenue growth, the company faced challenges such as declining same-store sales and slower-than-expected expansion [4][8]. - Same-store average daily sales decreased from 23,100 RMB in June 2024 to 20,000 RMB in June 2025, with the largest decline in North China at 15.9% [8][9]. - The overall average consumer spending dropped from 61.8 RMB in 2023 to 55.5 RMB in 2025 [9]. Expansion Strategy - Green Tea plans to continue its expansion strategy, aiming to open 150, 200, and 213 new restaurants in 2025, 2026, and 2027 respectively, targeting a total of over 1,000 stores by 2027 [10][11]. - The company has focused on smaller restaurant formats, which have shown higher turnover rates and lower operating costs, with the number of small restaurants increasing from 100 in 2022 to 284 in 2024 [7][10]. Store Count and Market Presence - As of June 30, 2025, Green Tea operated 502 stores nationwide, with over half located in first-tier and new first-tier cities [6][7]. - The company only added 37 new stores in the first half of 2025, achieving only 24.7% of its annual target, indicating a slower expansion pace than anticipated [11][12].

Financial Data and Key Metrics Changes - Revenue for the second quarter grew to over $1,500,000,000 for the first time in company history, representing a 12.7% increase year-over-year [5][17] - Same store sales increased by 5.8%, driven by a 4% traffic growth and a 1.8% increase in average check [5][17] - Diluted earnings per share increased by 4% to $1.86 [17] - Restaurant margin dollars increased by 6.1% to $257,000,000, while restaurant margin as a percentage of total sales decreased by 108 basis points year-over-year to 17.1% [17][18] Business Line Data and Key Metrics Changes - Texas Roadhouse averaged approximately $172,000 in weekly sales, while Bubba's 33 averaged over $128,000 in weekly sales [6][7] - Jaggers delivered average weekly sales of nearly $76,000 in the second quarter [7] - The company plans to open approximately 30 company-owned restaurants this year, with a potential for double-digit openings for Bubba's next year [8][10] Market Data and Key Metrics Changes - Inflation for commodities was in line with expectations, with a full-year inflation guidance increased to approximately 5% due to higher beef inflation [14] - Labor inflation was also in line with expectations, with a full-year guidance lowered to approximately 4% [14] Company Strategy and Development Direction - The company is focused on a "people first" approach, emphasizing legendary food and service [11] - Plans to acquire additional franchise locations and continue expanding the Bubba's brand, aiming for 200 locations [7][10] - The company is committed to maintaining its capital allocation philosophy, prioritizing new restaurant development and existing restaurant care [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of operations and the commitment of the team, despite facing challenges [11] - The company is monitoring inflationary trends closely and adjusting strategies accordingly [14][28] - Management remains optimistic about the growth potential of Bubba's and Jaggers, with plans for increased openings in the coming years [42][126] Other Important Information - The company completed the acquisition of three franchised restaurants, bringing the total to 17 for the year, and plans to acquire three more in the fourth quarter [10] - The company is purchasing its support center buildings, which will save approximately $2,500,000 in rent annually [103] Q&A Session Summary Question: Insights on inflation dynamics - Management noted that strong retail demand for beef and tighter supply have driven inflation higher, with expectations of peak inflation in the third quarter [25][28] Question: Mix effect and consumer behavior - Negative mix pressure is primarily from the alcohol category, while positive trends are seen in entrees and mocktails [32][36] Question: Expectations for inflation in Q3 and Q4 - Anticipated commodity inflation could reach 7% in Q3, decreasing to 4-5% in Q4 [41] Question: Growth opportunities in California - The company is excited about acquiring remaining franchise units in California and plans to explore growth opportunities in the state [96][99] Question: Off-premise sales growth - Off-premise sales growth is attributed to improved operational efficiency, the mobile app, and better execution by staff [120][123] Question: Delivery considerations - Currently, the company is not pursuing delivery options broadly but is open to discussions based on individual unit needs [130][132]

Core Viewpoint - Green Tea Group successfully listed on the Hong Kong Stock Exchange on May 16, with an opening price of HKD 7.19 per share after five attempts since 2021 [1] Financial Performance - Revenue projections for Green Tea Group from 2022 to 2024 are approximately CNY 2.375 billion, CNY 3.589 billion, and CNY 3.838 billion respectively, with net profits of about CNY 17 million, CNY 296 million, and CNY 350 million [1][2] - The company plans to open 150, 200, and 213 new restaurants from 2025 to 2027 [2] Restaurant Expansion - As of April 14, 2025, Green Tea Group operates 489 restaurants, with half located in first-tier and new first-tier cities, and the other half in second-tier and below cities [1] - The total number of restaurants is projected to increase to 465 by the end of 2024, up from 360 in 2023 [2] Market Position - In 2024, Green Tea Group ranks third in the number of restaurants and fourth in revenue among casual Chinese restaurant brands in mainland China, holding a market share of 0.7% [1] Customer Metrics - Despite an increase in total customer reception due to the growth in restaurant numbers, key operational metrics such as same-store sales and table turnover rates are expected to decline in 2024 [3][5] - Average consumer spending is projected to decrease from CNY 61.8 in 2023 to CNY 56.2 in 2024, with table turnover rates dropping from 3.3 to 3 [3] Strategic Focus - The company is increasing its focus on delivery services, which is expected to see year-on-year growth in 2024 [5] - Funds raised from the IPO will be used to expand the restaurant network, establish central food processing facilities, and upgrade IT systems and related infrastructure [2]