Financial Data and Key Metrics Changes - CAVA's revenue in Q3 2025 grew 20% year-over-year to $289.8 million and 66.8% compared to Q3 2023 [19] - Same restaurant sales growth was 1.9%, with guest traffic approximately flat [19] - Adjusted EBITDA for Q3 was $40 million, a 19.6% increase versus Q3 2024 [23] - Net income reported was $14.7 million, with diluted EPS at 12 cents [24] - Year-to-date free cash flow was $23.3 million [25] Business Line Data and Key Metrics Changes - CAVA opened 17 net new restaurants, bringing the total to 415 locations [19] - Restaurant-level profit margin was 24.6%, compared to 25.6% in Q3 2024 [20] - Food, beverage, and packaging costs were 30.1% of revenue, reflecting a slight increase due to tariffs and new menu items [20] - Labor costs were 25.5% of revenue, reflecting a 2% wage increase [20] Market Data and Key Metrics Changes - CAVA's same restaurant sales accelerated by 350 basis points to 20% on a two-year basis [19] - The restaurant industry has seen a 7% decline in transactions since 2019, while CAVA has grown transactions in the mid-20s [42] Company Strategy and Development Direction - CAVA aims to expand its Mediterranean cuisine across the U.S. while enhancing guest loyalty and operational integrity [5][8] - The company is focusing on culinary innovation, including the introduction of Chicken Shawarma and a salmon offering [10][11] - CAVA is investing in technology to improve guest experiences, including a new kitchen display system [14][51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic pressures affecting consumer spending but remains confident in the brand's resilience and market share growth [5][26] - The company expects to open 68-70 new restaurants in 2025 and anticipates same restaurant sales growth of 3%-4% [25][27] - Management emphasized the importance of delivering exceptional guest experiences to drive long-term traffic and competitive advantage [33][56] Other Important Information - CAVA's loyalty program has grown by approximately 36% since its relaunch, enhancing guest engagement [12][42] - The company has zero debt and $387.7 million in cash and investments, providing a strong liquidity position [24] Q&A Session Summary Question: Changes in same-store sales dynamics - Management noted that the honeymoon impact remains similar to previous quarters, with macro pressures being the primary concern [29] Question: Performance of the salmon test - The salmon offering has shown broad appeal and is expected to launch more widely in late spring 2026 if current trends continue [31] Question: Leadership changes in operations - The leadership transition was proactive to ensure the company is prepared for future growth and operational integrity [32] Question: Pipeline of traffic-driving initiatives - Management highlighted upcoming innovations in pita chips and catering tests, along with efficient marketing strategies [34] Question: Value perception among non-CAVA users - CAVA's value perception remains strong, supported by biannual brand health surveys and third-party research [47] Question: Technology's impact on throughput and guest frequency - The new kitchen display system has improved order accuracy and guest satisfaction, which correlates with increased sales [52]