CAVA GROUP, INC.
For the period ended Jul 13, 2025. Filed Aug 13, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 13, 2025 · Filed Aug 13, 2025
CAVA$59.15-1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-04-20; filed 2025-05-16.
0001628280-25-026077
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-07-13; filed 2025-08-13.
0001639438-25-000007
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 86 previous paragraphs and 121 current paragraphs.
67 unchanged; 18 reworded; 23 added; 1 removed; 0 previous and 13 current paragraphs rearranged.
Tables are not compared: 8 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Comparison of the twelve weeks ended July 13, 2025 and July 14, 2024
Current report
The increase in general and administrative expenses was primarily due to investments to support future growth, including our CAVA Connect conference, and higher equity-based compensation, partially offset by lower performance-based incentive compensation and legal costs.
Current report
Other income, net:
Current report
The increase in other income, net was due to the fair value change recognized on a convertible promissory note described in Item 1, Financial Statements, Note 3 (Investments).
Current report
Provision for income taxes:
Current report
Comparison of the twenty-eight weeks ended July 13, 2025 and July 14, 2024
Current report
CAVA Segment Results
Current report
CAVA Revenue:
Current report
CAVA food, beverage, and packaging:
Current report
CAVA labor:
Current report
CAVA occupancy:
Current report
CAVA other operating expenses:
Current report
The increase in CAVA other operating expenses was primarily due to the 89 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 14, 2024 and CAVA Same Restaurant Sales Growth of 6.6%. As a percentage of CAVA Revenue, CAVA other operating expenses remained flat due to operating leverage associated with higher sales, offset by increases in individually insignificant items.
Current report
Other Results
Current report
Consolidated Results
Current report
N/M data not meaningful
Current report
General and administrative expenses:
Current report
Depreciation and amortization:
Current report
Pre-opening costs:
Current report
The increase in pre-opening costs was due to the volume of new CAVA restaurants under construction and the timing of openings.
Current report
Interest income, net:
Current report
Other income, net:
Current report
The increase in other income, net, was due to the fair value change recognized on a convertible promissory note described in Item 1, Financial Statements, Note 3 (Investments).
Removed paragraphs (1)
Previous report
Comparison of the sixteen weeks ended April 20, 2025 and April 21, 2024
Reworded paragraphs (18)
Previous wording
CAVA Group, Inc. (together with its wholly owned subsidiaries, referred to as the “Company,” “CAVA,” “we,” “us,” and “our” unless specified otherwise) was formed as a Delaware corporation in 2015, and prior to that, the first CAVA restaurant opened in 2011 in Bethesda, Maryland. The Company is headquartered in Washington, D.C. and, as of April 20, 2025, the Company operated 382 fast-casual CAVA Restaurants in 26 states and Washington, D.C. The Company’s authentic Mediterranean cuisine unites taste and health, with a menu that features chef-curated and customizable bowls and pitas. The Company’s dips, spreads, and dressings are centrally produced for use in our restaurants and to be sold in grocery stores.
Current wording
CAVA Group, Inc. (together with its wholly owned subsidiaries, referred to as the “Company,” “CAVA,” “we,” “us,” and “our” unless specified otherwise) was formed as a Delaware corporation in 2015, and prior to that, the first CAVA restaurant opened in 2011 in Bethesda, Maryland. The Company is headquartered in Washington, D.C. and, as of July 13, 2025, the Company operated 398 fast-casual CAVA Restaurants in 27 states and Washington, D.C. The Company’s authentic Mediterranean cuisine unites taste and health, with a menu that features chef-curated and customizable bowls and pitas. The Company’s dips, spreads, and dressings are centrally produced for use in our restaurants and to be sold in grocery stores.
Previous wording
1 To achieve an optimal comparison of fiscal weeks in the CAVA Same Restaurant Sales Growth calculation in fiscal 2024, giving consideration to holiday periods, each week of fiscal 2023 was shifted by one week. As a result of this shift, approximately $3.9 million of revenue is not included in CAVA Same Restaurant Sales Growth for the sixteen weeks ended April 21, 2024. Had this shift not been made, CAVA Same Restaurant Sales Growth would have been 4.3% in the sixteen weeks ended April 21, 2024.
Current wording
1 To achieve an optimal comparison of fiscal weeks in the CAVA Same Restaurant Sales Growth calculation in fiscal 2024, giving consideration to holiday periods, each week of fiscal 2023 was shifted by one week. As a result of this shift, approximately $3.8 million of revenue is not included in CAVA Same Restaurant Sales Growth for the twenty-eight weeks ended July 14, 2024. Had this shift not been made, CAVA Same Restaurant Sales Growth would have been 9.0% in the twenty-eight weeks ended July 14, 2024 and immaterially impacted in the twelve weeks ended July 14, 2024.
Previous wording
Our results of operations, on a consolidated basis and by segment, for the sixteen weeks ended April 20, 2025 and April 21, 2024, are set forth below. We present our segment results before our consolidated results as we believe that our CAVA segment is more useful and meaningful in assessing the performance of our business, which is mainly driven by our CAVA segment.
Current wording
Our results of operations, on a consolidated basis and by segment, for the twelve and twenty-eight weeks ended July 13, 2025 and July 14, 2024, are set forth below. We present our segment results before our consolidated results as we believe that our CAVA segment is more useful and meaningful in assessing the performance of our business, which is mainly driven by our CAVA segment.
Previous wording
The increase in CAVA food, beverage, and packaging was primarily due to a $14.0 million increase from the 73 Net New CAVA Restaurant Openings during or subsequent to the sixteen weeks ended April 21, 2024. The remainder of the increase was primarily due to CAVA Same Restaurant Sales Growth of 10.8%. As a percentage of CAVA Revenue, CAVA food, beverage, and packaging increased primarily due to input costs associated with the launch of grilled steak in the second quarter of fiscal 2024.
Current wording
The increase in CAVA food, beverage, and packaging was primarily due to a $12.4 million increase from the 75 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 14, 2024. The remainder of the increase was primarily due to CAVA Same Restaurant Sales Growth of 2.1%. As a percentage of CAVA Revenue, CAVA food, beverage, and packaging increased primarily due to input costs associated with the launch of grilled steak in the second quarter of fiscal 2024, partially offset by other lower input costs.
Previous wording
The increase in CAVA occupancy was primarily due to the 73 Net New CAVA Restaurant Openings during or subsequent to the sixteen weeks ended April 21, 2024. As a percentage of CAVA Revenue, CAVA occupancy decreased primarily due to operating leverage associated with higher sales.
Current wording
The increase in CAVA occupancy was primarily due to the 75 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 14, 2024. As a percentage of CAVA Revenue, CAVA occupancy decreased primarily due to operating leverage associated with higher sales.
Previous wording
The increase in CAVA other operating expenses was primarily due to the 73 Net New CAVA Restaurant Openings during or subsequent to the sixteen weeks ended April 21, 2024, investments in the integrity of our physical spaces in support of our increased restaurant volumes, and CAVA Same Restaurant Sales Growth of 10.8%. As a percentage of CAVA Revenue, CAVA other operating expenses decreased due to operating leverage associated with higher sales, partially offset by the aforementioned investments in the integrity of our physical spaces in support of our increased restaurant volumes.
Current wording
The increase in CAVA other operating expenses was primarily due to the 75 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 14, 2024 and CAVA Same Restaurant Sales Growth of 2.1%. As a percentage of CAVA Revenue, CAVA other operating expenses increased primarily due to individually insignificant items, partially offset by operating leverage associated with higher sales.
Previous wording
The increase in depreciation and amortization was primarily driven by the addition of assets from the 73 Net New CAVA Restaurant Openings during or subsequent to the sixteen weeks ended April 21, 2024 and technology improvements.
Current wording
The increase in depreciation and amortization was primarily driven by the addition of assets from the 75 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 14, 2024 and technology improvements.
Previous wording
The increase in pre-opening costs was due to the timing of new CAVA restaurant openings, and includes the impact of higher rent geographies in the current quarter.
Current wording
The increase in pre-opening costs was due to the volume of new CAVA restaurants under construction and the timing of openings.
Previous wording
The effective income tax rate for the sixteen weeks ended April 20, 2025 was a benefit of 26.3% due to a $10.7 million reduction to income tax expense associated with equity-based compensation, which includes a discrete item for the excess tax benefit. The effective tax rate in the prior year quarter was 1.8% as the amount of income tax expense was immaterial prior to the Company’s release of its valuation allowance against deferred tax assets in the fourth quarter of fiscal 2024.
Current wording
The effective tax rate for the twelve weeks ended July 13, 2025 was 22.5%, which includes the impact of a $1.7 million reduction to income tax expense associated with equity-based compensation. The effective tax rate for the twelve weeks ended July 14, 2024 was 1.4% as the amount of income tax expense was immaterial prior to the Company’s release of its valuation allowance against deferred tax assets in the fourth quarter of fiscal 2024.
Previous wording
The increase in CAVA Revenue was primarily due to a $46.1 million increase from the 73 Net New CAVA Restaurant Openings during or subsequent to the sixteen weeks ended April 21, 2024. In addition, the increase in CAVA Revenue was driven by CAVA Same Restaurant Sales Growth of 10.8%, which consisted of a 7.5% increase from guest traffic and a 3.3% increase from menu price and product mix.
Current wording
The increase in CAVA Revenue was primarily due to an $88.0 million increase from the 89 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 14, 2024. In addition, the increase in CAVA Revenue was driven by CAVA Same Restaurant Sales Growth of 6.6%, which consisted of a 3.9% increase from guest traffic and a 2.7% increase from menu price and product mix.
Previous wording
The increase in CAVA labor was primarily due to the 73 Net New CAVA Restaurant Openings during or subsequent to the sixteen weeks ended April 21, 2024 and higher average hourly wages of 3%. As a percentage of CAVA Revenue, CAVA labor decreased due to the impact of higher sales, partially offset by the aforementioned incremental wage investments.
Current wording
The increase in CAVA labor was primarily due to the 89 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 14, 2024 and higher average hourly wages of approximately 2%. As a percentage of CAVA Revenue, CAVA labor decreased due to the impact of higher sales, partially offset by the aforementioned incremental wage investments.
Previous wording
The increase in general and administrative expenses was primarily due to investments to support future growth and higher equity-based compensation, including payroll taxes arising from the vesting of RSUs.
Current wording
The increase in general and administrative expenses was primarily due to investments to support future growth, including our CAVA Connect conference, and higher equity-based compensation, including payroll taxes arising from the vesting of RSUs, partially offset by lower performance-based incentive compensation and legal costs.
Previous wording
The increase in impairment and asset disposal costs was primarily due to impairment charges related to certain operating lease assets and property and equipment, net.
Current wording
The increase in impairment and asset disposal costs was primarily due to impairment charges related to certain operating lease assets and property and equipment, net, in the current year period.
Previous wording
The following table provides a reconciliation of net income to Adjusted EBITDA and net income margin to Adjusted EBITDA margin for the periods indicated:
Current wording
The following table provides a reconciliation of net income to Adjusted EBITDA and net income margin to Adjusted EBITDA margin:
Previous wording
The following table provides a reconciliation of net income to Adjusted Net Income and net income margin to Adjusted Net Income margin for the periods indicated:
Current wording
The following table provides a reconciliation of net income to Adjusted Net Income and net income margin to Adjusted Net Income margin:
Previous wording
We had cash and cash equivalents of $289.4 million and $366.1 million as of April 20, 2025 and December 29, 2024, respectively. In addition, we had investments of $79.9 million as of April 20, 2025. For the sixteen weeks ended April 20, 2025, our operations were funded from cash flows from operations.
Current wording
We had cash and cash equivalents of $290.2 million and $366.1 million as of July 13, 2025 and December 29, 2024, respectively. In addition, we had investments in fixed income debt securities of $95.6 million as of July 13, 2025. For the twenty-eight weeks ended July 13, 2025, our operations were funded from cash flows from operations.
Previous wording
The increase in net cash used in investing activities was primarily due to launching an investment portfolio to optimize returns on our cash balances and higher capital expenditures related to future new CAVA restaurant openings.
Current wording
The increase in net cash used in investing activities was primarily due to launching an investment portfolio of fixed income debt securities to optimize returns on our cash balance, higher capital expenditures related to future new CAVA restaurant openings, and an investment in a convertible promissory note described in Item 1, Financial Statements, Note 3 (Investments).
Previous wording
The change in net cash provided by (used in) financing activities was primarily due to decreased tax withholding obligations arising from the vesting of RSUs and an increase in stock options exercised in the sixteen weeks ended April 20, 2025 compared with the prior year period.
Current wording
The change in net cash provided by (used in) financing activities was primarily due to decreased tax withholding obligations arising from the vesting of RSUs and an increase in proceeds from shares acquired under equity plans in the twenty-eight weeks ended July 13, 2025 compared with the prior year period.
Rearranged current paragraphs (13)
Current report — wording carried from elsewhere
The increase in CAVA Revenue was primarily due to a $41.9 million increase from the 75 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 14, 2024. In addition, the increase in CAVA Revenue was driven by CAVA Same Restaurant Sales Growth of 2.1%, primarily from menu price and product mix with guest traffic being approximately flat.
Current report — wording carried from elsewhere
The increase in CAVA labor was primarily due to the 75 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 14, 2024. The remainder of the increase was primarily due to the impact of higher average hourly wages of approximately 2%. As a percentage of CAVA Revenue, CAVA labor decreased due to the impact of higher sales, partially offset by the aforementioned incremental wage investments.
Current report — wording carried from elsewhere
The following table summarizes remaining activity related to our CPG operations and the production of dips and spreads used in CAVA restaurants:
Current report — wording carried from elsewhere
The following table summarizes the results of the CAVA segment:
Current report — wording carried from elsewhere
The increase in CAVA food, beverage, and packaging was primarily due to a $26.7 million increase from the 89 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 14, 2024. The remainder of the increase was primarily due to CAVA Same Restaurant Sales Growth of 6.6%. As a percentage of CAVA Revenue, CAVA food, beverage, and packaging increased primarily due to input costs associated with the launch of grilled steak in the second quarter of fiscal 2024, partially offset by other lower input costs.
Current report — wording carried from elsewhere
The increase in CAVA occupancy was primarily due to the 89 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 14, 2024. As a percentage of CAVA Revenue, CAVA occupancy decreased primarily due to operating leverage associated with higher sales.
Current report — wording carried from elsewhere
The increase in revenue noted above was primarily due to higher CPG sales. As a percentage of revenue, food, beverage, and packaging decreased due to operational efficiencies realized since the commencement of operations at our facility in Verona, VA in the first quarter of fiscal 2024.
Current report — wording carried from elsewhere
The following table summarizes our consolidated results of operations:
Current report — wording carried from elsewhere
Revenue, Food, beverage, and packaging, Labor, Occupancy, and Other operating expenses:
Current report — wording carried from elsewhere
The increases in Revenue, Food, beverage, and packaging, Labor, Occupancy, and Other operating expenses are primarily driven by the growth of our CAVA Segment. Refer to “CAVA Segment Results” above for more information.
Current report — wording carried from elsewhere
The increase in depreciation and amortization was primarily driven by the addition of assets from the 89 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 14, 2024 and technology improvements.
Current report — wording carried from elsewhere
The decrease in interest income, net, was due to lower interest rates on short term investments in the current year period.
Current report — wording carried from elsewhere
The effective income tax rate for the twenty-eight weeks ended July 13, 2025 was insignificant due to a $12.4 million reduction to income tax expense associated with equity-based compensation. The effective tax rate for the twenty-eight weeks ended July 14, 2024 was 1.6% as the amount of income tax expense was immaterial prior to the Company’s release of its valuation allowance against deferred tax assets in the fourth quarter of fiscal 2024.