Financial Data and Key Metrics Changes - CAVA's revenue in Q4 2025 grew 21.2% year-over-year to $272.8 million, with a full-year revenue increase of 22.5% [21][9] - Same-restaurant sales increased by 0.5% in Q4 and 4.0% for the full year, with a two-year same-restaurant sales growth of 21.7% [21][9] - Adjusted EBITDA for Q4 was $25.8 million, a 2.6% increase from Q4 2024, while full-year adjusted EBITDA was $152.8 million, a 21% increase [24][9] - Net income for the full year was $63.7 million, a 26.9% increase compared to the previous year [26] Business Line Data and Key Metrics Changes - CAVA opened 24 net new restaurants in Q4, ending the year with a total of 439 locations, a 19.6% increase year-over-year [9][21] - Restaurant-level profit margin in Q4 was 21.4%, with a restaurant-level profit of $58.3 million, reflecting a 15.7% growth [22][9] Market Data and Key Metrics Changes - CAVA's unit economic model remains strong, with new restaurant productivity above 100% and average annual volumes (AAVs) trending above $3 million [21][9] - The company is expanding into new markets in the Midwest, including Cincinnati, St. Louis, Columbus, and Minneapolis [11] Company Strategy and Development Direction - CAVA aims to expand its Mediterranean presence across the U.S. with a goal of at least 1,000 restaurants by 2032 [11] - The company is focusing on menu innovation, introducing new items like pomegranate-glazed salmon to enhance its offerings [13][12] - CAVA is investing in technology and operational improvements, including the rollout of kitchen display systems and TurboChef ovens to enhance restaurant efficiency [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing the importance of delivering value and exceptional experiences to customers [11][20] - The company anticipates low to mid-single-digit same-restaurant sales growth for 2026, reflecting a cautious approach to the macroeconomic environment [29][30] - CAVA plans to maintain a focus on operational integrity and team member development as it scales [19][70] Other Important Information - CAVA's effective tax rate for 2025 was 10%, expected to rise to between 25% and 30% in 2026 due to changes in equity-based compensation [25][26] - The company reported $393 million in cash and investments at the end of the quarter, with zero debt outstanding [26][27] Q&A Session Summary Question: Same-restaurant sales and new unit performance - Management noted that while new units entering the comp base can create headwinds, overall same-restaurant sales have shown strength across all geographies and income cohorts [33][34] Question: New unit productivity assumptions for 2026 - The guidance includes a new restaurant productivity assumption of about 90%, reflecting a cautious approach given macroeconomic uncertainties [38][39] Question: Restaurant-level margin outlook - Management indicated that the introduction of new menu items like salmon will initially pressure margins but is expected to drive overall profitability [42][44] Question: Drivers of same-store sales growth - Management highlighted multiple initiatives contributing to sales growth, including the AGM rollout and marketing efforts, rather than a single factor [47][49] Question: Digital channel performance - The company has improved execution on digital channels, leading to increased transaction growth, aided by technology investments [87][88] Question: Catering business development - CAVA is testing catering in select markets and plans to expand thoughtfully, ensuring operational success before a broader rollout [77][78]

Financial Data and Key Metrics Changes - CAVA's revenue in Q4 2025 grew 21.2% year-over-year to $272.8 million, with a full-year revenue increase of 22.5% [22][9] - Same-restaurant sales increased by 0.5% in Q4 and 4% for the full year, with a two-year same-restaurant sales growth of 21.7% [9][22] - Adjusted EBITDA for Q4 was $25.8 million, a 2.6% increase from Q4 2024, while full-year adjusted EBITDA was $152.8 million, a 21% increase [25][9] - Net income for the full year was $63.7 million, a 26.9% increase compared to the previous year [27] Business Line Data and Key Metrics Changes - CAVA opened 24 net new restaurants in Q4, ending the year with a total of 439 locations, a 19.6% increase year-over-year [9][22] - Restaurant-level profit margin in Q4 was 21.4%, with a full-year margin of 23.7% to 24.2% expected for 2026 [9][29] Market Data and Key Metrics Changes - CAVA's unit economic model remains strong, with new restaurant productivity above 100% and average annual volumes trending above $3 million [22] - The company is expanding into new markets in the Midwest, including Cincinnati, St. Louis, Columbus, and Minneapolis [11] Company Strategy and Development Direction - CAVA aims to expand its Mediterranean presence across the U.S. with a goal of at least 1,000 restaurants by 2032 [11] - The company is focusing on menu innovation, introducing new items like pomegranate-glazed salmon to enhance its offerings [12][13] - CAVA is enhancing its loyalty program with tiered status levels to deepen guest relationships [15] Management's Comments on Operating Environment and Future Outlook - Management noted the importance of delivering real value and exceptional experiences amid a competitive pricing environment [11] - The company expects same-restaurant sales growth of 3%-5% for 2026, reflecting a cautious outlook due to macroeconomic uncertainties [30] - CAVA plans to maintain a focus on operational integrity and team member development as it scales [70] Other Important Information - CAVA has no debt and ended the quarter with $393 million in cash and investments [27] - The company expects to increase its revolving credit facility and extend its maturity date in the first quarter [27] Q&A Session Summary Question: Same-restaurant sales and new unit performance - Management indicated that new units have been performing well and are not significantly impacting same-restaurant sales negatively [35] Question: New unit productivity assumptions for 2026 - The guidance includes a new restaurant productivity assumption of about 90% for 2026 [39] Question: Restaurant-level margin outlook - Management acknowledged that the introduction of new menu items like salmon will impact margins but is expected to drive overall profitability [44] Question: Drivers of same-restaurant sales growth - Management noted that multiple initiatives contributed to the improvement in same-restaurant sales, including the AGM rollout and marketing efforts [49] Question: Catering market test updates - CAVA is conducting a second market test for catering and plans to expand in 2027, ensuring operators are set up for success [78] Question: Q1 performance and key drivers - Management highlighted underlying brand strength and value delivery as key drivers of Q1 performance, despite weather challenges [86] Question: Digital mix and operational improvements - The company has improved execution on digital channels, leading to increased transaction growth [90]

Core Insights - The fast-casual segment is facing challenges, particularly highlighted by Chipotle's struggles and CAVA's recent performance, which includes a same-store sales increase of only 1.9% in Q3 and revenue growth of 20%, both below Wall Street expectations [1][2] Company Performance - CAVA's CEO Brett Schulman noted significant market share gains since 2019, attributed to underpricing competitors by nearly 10% [2] - The Mediterranean concept has shown substantial growth, with Q3 2025 revenue up nearly 70% compared to the same period two years prior [2] - The launch of Chicken Shawarma in September met expectations, and the company is testing salmon, which has shown encouraging results [3] Membership and Technology Initiatives - CAVA has seen a 36% growth in its rewards program membership since its relaunch a year ago, with new tiered status levels recently introduced [3] - The company is implementing a new kitchen display system in at least 350 restaurants by year-end, which has improved guest scores through better accuracy and communication [4] - All CAVA restaurants are now equipped with TurboChef ovens, enhancing cooking consistency and speed, and supporting menu innovation [4] Sales Trends and Outlook - Sales have begun to moderate as Q3 progressed, influenced by broader macroeconomic pressures, particularly among younger consumers [5] - CAVA revised its full-year outlook for same-store sales to a 3% to 4% increase, down from a previous forecast of 4% to 6% [6] - Expected restaurant-level profit margins have also been adjusted to a range of 24.4% to 24.8%, down from 24.8% to 25.2% [6]

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][6] - Same restaurant sales increased 1.9%, with guest traffic approximately flat [19][7] - Adjusted EBITDA for Q3 was $40 million, a 19.6% increase versus Q3 2024 [22] - Net income reported was $14.7 million, with diluted EPS at 12 cents [23] - Year-to-date free cash flow was $23.3 million [24] Business Line Data and Key Metrics Changes - CAVA opened 17 net new restaurants, bringing the total to 415 locations [19][9] - 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 growth accelerated by 350 basis points to 20% on a two-year basis [19][31] - The overall restaurant industry has seen a decline in transactions by 7% since 2019, while CAVA has grown transactions in the mid-20s [58] Company Strategy and Development Direction - CAVA aims to expand its Mediterranean cuisine across the U.S., focusing on community engagement and brand loyalty [6][8] - The company is investing in technology and operational improvements to enhance guest experiences and streamline operations [14][13] - CAVA plans to introduce new menu items, including salmon, and expand its catering test in 2026 [45][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic pressures affecting consumer spending, particularly among younger demographics [8][56] - Despite challenges, CAVA remains confident in its long-term structural health and market share growth [25][26] - The company anticipates 68-70 net new restaurant openings in 2025 and same restaurant sales growth of 3%-4% [24] Other Important Information - CAVA's loyalty program has grown by approximately 36% since its relaunch, enhancing guest engagement [12][58] - The company has zero debt and $387.7 million in cash and investments, with access to a $75 million undrawn revolver [23][24] Q&A Session Summary Question: Impact of honeymoon dynamics on same-store sales - Management noted that honeymoon impacts remain similar to previous quarters, with macroeconomic pressures being the primary concern [30][31] Question: Performance of salmon test - The salmon test has shown broad-based appeal and is expected to launch in late spring 2026 if current trends continue [37] Question: Changes in operations leadership - Leadership changes were made to proactively address future business needs and enhance guest experiences [40] Question: Traffic-driving initiatives for the next year - CAVA plans to innovate with pita chips and expand catering tests, alongside efficient marketing strategies [45] Question: Value perception among non-CAVA users - CAVA's value perception is strong, supported by biannual brand health surveys and third-party research [78] Question: Technology's role in improving throughput and guest frequency - Technology, including the kitchen display system, is expected to enhance order accuracy and improve guest experiences [82]

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]

Financial Data and Key Metrics Changes - Revenue in Q1 2025 grew 28.2% year over year to $328.5 million [21] - Same restaurant sales increased by 10.8%, driven by a traffic growth of 7.5% [21] - Adjusted EBITDA for the quarter was $44.9 million, a 34.6% increase compared to Q1 2024 [24] - Net income reached $25.7 million, an 83.7% increase over Q1 2024 [25] - Free cash flow for the quarter was $2.7 million [27] Business Line Data and Key Metrics Changes - Cava restaurant level profit was $82.3 million, representing 25.1% of revenue, compared to 25.2% in Q1 2024 [22] - The company opened 15 net new restaurants, bringing the total to 382 [21] Market Data and Key Metrics Changes - The company expanded its footprint to 26 states and the District of Columbia, entering Indiana and deepening its presence in Florida [9][10] - The performance in new markets, such as Indianapolis and South Florida, has exceeded expectations [78] Company Strategy and Development Direction - The company aims to reach at least 1,000 restaurants by 2032, focusing on community connection and Mediterranean hospitality [10] - The "Project Soul" initiative aims to enhance the in-restaurant experience through design improvements [10] - The company is launching a "Spice World" campaign to celebrate bold flavors while maintaining health-conscious offerings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's resilience despite macroeconomic uncertainties [6] - The company anticipates same restaurant sales growth of 6% to 8% for the full year 2025 [27] - Management noted strong consumer demand across all geographies and income strata, with no significant weakness observed [72] Other Important Information - The company has zero debt and $369.4 million in cash and investments, with access to a $75 million undrawn revolver [26] - The loyalty program has seen strong engagement, with nearly 8 million members and a 340 basis point increase in revenue from the program [15][36] Q&A Session Summary Question: Can you expand on the loyalty program and its engagement drivers? - Management noted a shift from a transaction-based model to a points-based system, which has increased engagement and participation [35] Question: What is the impact of the KDS rollout on throughput? - Management indicated that the new kitchen display systems enhance order management capabilities and improve order accuracy [39] Question: How is the brand performing in new markets? - Management reported strong performance in new markets, with restaurants in Indiana and South Florida exceeding expectations [78] Question: What is the outlook for restaurant margins? - Management highlighted that improved average unit volumes (AUV) contribute to margin expansion, while also focusing on reinvestment in team members and guest experience [56] Question: What are the expectations for menu innovation? - Management confirmed plans for a new protein introduction later in the year, indicating ongoing innovation efforts [48]

Financial Data and Key Metrics Changes - Revenue in Q1 2025 grew by 28.2% year over year to $328.5 million [19] - Same restaurant sales increased by 10.8%, driven by a traffic growth of 7.5% [19] - Adjusted EBITDA for the quarter was $44.9 million, a 34.6% increase compared to Q1 2024 [22] - Net income reached $25.7 million, an 83.7% increase from the previous year [23] - Free cash flow for the quarter was $2.7 million [24] Business Line Data and Key Metrics Changes - Cava opened 15 net new restaurants, bringing the total to 382 [19] - Restaurant-level profit was $82.3 million, representing 25.1% of revenue, compared to 25.2% in Q1 2024 [20] - Food, beverage, and packaging costs were 29.3% of revenue, an increase of 110 basis points year over year [20] Market Data and Key Metrics Changes - The company expanded its footprint to 26 states and the District of Columbia, entering Indiana and deepening its presence in Florida [8][9] - New market entries are planned for Detroit and Pittsburgh [9] Company Strategy and Development Direction - The company aims to reach at least 1,000 restaurants by 2032, focusing on community connection and Mediterranean hospitality [9] - The "Project Soul" initiative aims to enhance the in-restaurant experience through design improvements [9] - The company is launching a "Spice World" campaign to celebrate bold, spicy offerings [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's resilience despite macroeconomic uncertainties [5] - The company anticipates same restaurant sales growth of 6% to 8% for the full year [25] - Management noted strong performance across all geographies and income strata, with no significant weaknesses observed [44][70] Other Important Information - The company has zero debt and $369.4 million in cash and investments [24] - The loyalty program has seen strong engagement, with nearly 8 million members [13] Q&A Session Summary Question: Expansion on loyalty and tiered structure - Management highlighted the success of the loyalty program and plans to introduce a tiered structure to enhance engagement [31][33] Question: Impact of KDS on throughput - Management noted that the new kitchen display systems improve order management and accuracy, with plans to expand the rollout [36][38] Question: Performance in new markets - Management reported strong results in new markets like Indiana and Miami, indicating successful brand expansion [76] Question: Menu innovation and chicken shawarma test - Management confirmed positive consumer reception for the chicken shawarma test, with plans for broader rollout if successful [51][53] Question: Restaurant margin and reinvestment - Management emphasized the importance of reinvesting in team members and maintaining competitive pricing to support traffic momentum [55][57]

Core Viewpoint - CAVA Group, Inc. is set to report its first-quarter 2025 results, with expectations of earnings per share (EPS) growth and significant revenue increase compared to the previous year [1][4]. Earnings Estimates - The Zacks Consensus Estimate for CAVA's first-quarter EPS is 14 cents, reflecting a 16.7% increase from 12 cents in the same quarter last year [1]. - The consensus revenue estimate for the first quarter is $330.6 million, indicating a 27.7% growth from the prior year's figure [4]. Earnings Surprise History - CAVA has a history of earnings surprises, exceeding the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 62.6% [4][6]. Factors Influencing Q1 Results - The company's first-quarter performance is expected to benefit from strong traffic growth, strategic expansion, and enhancements in digital and in-restaurant experiences [8]. - Management anticipates that same-restaurant sales growth will peak in the first quarter, aligning with a full-year guidance of 6-8% growth [9]. Loyalty Program and Menu Innovation - CAVA's loyalty program has significantly boosted customer engagement and sales participation, particularly among lower-frequency users [10]. - The company is focusing on menu innovation, with seasonal items and premium offerings generating excitement and increasing check averages [11]. Cost Pressures - CAVA's performance may face challenges from elevated input costs, particularly due to higher food and packaging expenses, and increased labor costs [12][18]. Stock Performance and Valuation - CAVA shares have declined by 23.9% over the past three months, underperforming the broader restaurant industry [13]. - The stock is currently trading at a forward price-to-sales (P/S) multiple of 8.96X, significantly above the industry average of 4.07X [16]. Investment Considerations - CAVA is positioned to capitalize on the growing consumer interest in health-oriented dining and Mediterranean cuisine, with ongoing investments in restaurant growth and digital capabilities [17]. - However, challenges from rising costs and elevated general and administrative expenses may limit profitability and operating leverage [18].

Table of Contents As filed with the Securities and Exchange Commission on June 12, 2023. Registration No. 333-272068 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 2 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 CAVA Group, Inc. (Exact name of registrant as specified in its charter) Delaware 5812 47-3426661 (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Ident ...

Table of Contents As filed with the Securities and Exchange Commission on June 5, 2023. Registration No. 333-272068 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 AMENDMENT NO. 1 TO FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 CAVA Group, Inc. (Exact name of registrant as specified in its charter) Delaware 5812 47-3426661 (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) (I.R.S. Employer Identi ...