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]

CAVA Group (CAVA) Q1 2025 Earnings Call May 15, 2025 05:00 PM ET Speaker0 Good afternoon, ladies and gentlemen, and welcome to the Cava First Quarter twenty twenty five Earnings Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. This call is being recorded on 05/15/2025. I would now like to turn the conference over to Matt Milenovich. Please go ahead. Speaker1 Good afternoon, and welcome to Cabo's First Quarter twenty ...