CAVA Group Reports First Quarter 2024 Results
CAVA Group reported a robust fiscal first quarter for 2024, marked by a 30.3% revenue growth, totaling $256.3 million, up from $196.8 million the previous year. Same restaurant sales saw a modest 2.3% increase, with a substantial 30.7% growth over two years. The quarter also witnessed the opening of 14 new restaurants, bringing the total to 323, a 22.8% increase year-over-year. CAVA's restaurant-level profit margin stood at 25.2%, translating to $64.6 million, a 29.3% increase from the prior year. The company reported a net income of $14.0 million, a significant improvement from a net loss of $2.1 million in Q1 2023. Adjusted EBITDA nearly doubled to $33.3 million. The digital revenue mix was 37.0%, with a net cash flow of $4.7 million. CAVA has also revised its 2024 fiscal full-year outlook, projecting stronger restaurant openings and sales growth.
- Revenue increased by 30.3% to $256.3 million.
- Net income improved to $14.0 million from a net loss of $2.1 million.
- Adjusted EBITDA rose by 99.0% to $33.3 million.
- 14 new restaurants opened, a 22.8% increase in total restaurants.
- Restaurant-level profit grew by 29.3%, reaching $64.6 million.
- Net cash provided by operating activities was $38.4 million, with free cash flow of $4.7 million.
- Digital revenue mix stood at 37.0%.
- Same restaurant sales growth was only 2.3%, with a 1.2% decrease in guest traffic partially offsetting gains.
- Restaurant-level profit margin slightly decreased to 25.2% from 25.4% due to incremental wage investments.
- General and administrative expenses increased to $33.8 million from $29.0 million.
Insights
CAVA Group has reported a
However, while same restaurant sales grew by
Looking ahead, CAVA has raised its full-year 2024 guidance, indicating management's confidence in sustaining growth. Key targets include net new restaurant openings of 50 to 54 and adjusted EBITDA of
CAVA Group's Q1 2024 results showcase the strength of its Mediterranean fast-casual brand. The significant growth in revenue and restaurant-level profit margin of
While a
However, the slight decline in guest traffic indicates potential challenges in attracting new customers or retaining existing ones. Future performance will depend on the company's ability to innovate and enhance customer experience to boost traffic. The raised full-year guidance, including a
Year Over Year CAVA Revenue Growth of
14 Net New CAVA Restaurant Openings During Quarter
First Quarter 2024 CAVA Restaurant-Level Profit Margin of
"CAVA’s results in the first quarter demonstrate the strength of our category-defining brand, our clear leadership position in Mediterranean and our compelling differentiated value proposition,” said Brett Schulman, Co-Founder and CEO. “Driven by our highly portable Mediterranean concept and powerful unit economic engine, we generated our fourth consecutive quarter of net income and our first quarter ever of positive free cash flow. During the quarter, Same Restaurant Sales grew
Fiscal First Quarter 2024 Highlights:
-
CAVA Revenue grew
30.3% to$256.3 million $196.8 million -
Net New CAVA Restaurant Openings of 14, bringing total CAVA Restaurants to 323, a
22.8% increase in total CAVA Restaurants year over year. -
CAVA Same Restaurant Sales Growth of
2.3% . -
CAVA AUV of
$2.6 million $2.5 million -
CAVA Restaurant-Level Profit of
$64.6 million 29.3% over the prior year quarter, with CAVA Restaurant-Level Profit Margin of25.2% . -
CAVA Digital Revenue Mix was
37.0% . -
CAVA Group Net Income of
$14.0 million $2.1 million -
CAVA Group Adjusted EBITDA(1) of
$33.3 million $16.7 million -
Net cash provided by operating activities of
$38.4 million $4.7 million
CAVA Fiscal First Quarter 2024 Review:
CAVA Revenue was
CAVA Restaurant-Level Profit Margin was
CAVA Group Fiscal First Quarter 2024 Review:
General and administrative expenses were
Net income was
Adjusted EBITDA(1) was
__________________
(1) |
General and administrative expenses, excluding equity-based compensation, Adjusted EBITDA, and Free Cash Flow are non-GAAP financial measures. Reconciliations to the most directly comparable financial measures presented in accordance with GAAP are set forth in the tables at the end of this press release. |
Fiscal Full-Year 2024 Outlook:
CAVA Group announced today that it has raised fiscal full-year 2024 guidance, as follows:
|
|
February 26, 2024 |
|
May 28, 2024 |
Net New CAVA Restaurant Openings |
|
48 to 52 |
|
50 to 54 |
CAVA Same Restaurant Sales Growth |
|
|
|
|
CAVA Restaurant-Level Profit Margin |
|
|
|
|
Pre-opening costs |
|
|
|
|
Adjusted EBITDA |
|
|
|
|
Actual results may differ materially from CAVA Group's fiscal full-year 2024 guidance as a result of, among other things, the factors described under "Forward-Looking Statements" below.
A reconciliation of the forward-looking fiscal 2024 Adjusted EBITDA to net income (loss) cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted.
About CAVA Group:
CAVA is the category-defining Mediterranean fast-casual restaurant brand, bringing together healthful food and bold, satisfying flavors at scale. Our brand and our opportunity transcend the Mediterranean category to compete in the large and growing limited-service restaurant sector as well as the health and wellness food category. CAVA serves guests across gender lines, age groups, and income levels and benefits from generational tailwinds created by consumer demand for healthy living and a demographic shift towards greater ethnic diversity. We meet consumers’ desires to engage with convenient, authentic, purpose-driven brands that view food as a source of self-expression. The broad appeal of our food combined with these favorable industry trends drive our vast opportunity for continued growth.
Earnings Conference Call:
The Company will host a conference call on May 28, 2024, at 5:00 PM Eastern Time to discuss first quarter 2024 financial results as well as provide a business update. Investors will have the opportunity to listen to the conference call live through the webcast from the company's website on the investor relations page at investor.cava.com. A recorded webcast will be available on CAVA's investor relations website shortly after the call and available for up to one year.
Cautionary Statement Regarding Forward-Looking Statements:
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect our current views with respect to, among other things, our operations and financial performance. Forward-looking statements include all statements that are not historical facts. These forward-looking statements relate to matters such as our industry, business strategy, goals, and expectations concerning our market position, future operations, margins, profitability, capital expenditures, liquidity and capital resources, and other financial and operating information. These statements may include words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” “outlook,” the negative version of these words or similar terms and phrases to identify forward-looking statements in this press release.
The forward-looking statements contained in this press release are based on management’s current expectations and are not guarantees of future performance. The forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, and projections will result or be achieved. Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. We believe that these factors include but are not limited to the following: our operation in a highly competitive industry; our ability to open new restaurants while managing our growth effectively and maintaining our culture; our ability to successfully identify appropriate locations and develop and expand our operations in existing and new markets; the profitability of new restaurants, and any impact to sales at our existing locations; the impact of changes in guest perception of our brand; our ability to successfully market our restaurants and brand; the impact of food safety, health department regulations, and food-borne illness concerns together with our ability to adequately address such concerns and meet regulatory obligations, including at our manufacturing facilities; our ability to maintain or increase prices; our ability to accurately predict guest trends and demand and successfully introduce new menu offerings and improve our existing menu offerings; the risks associated with leasing property; our ability to successfully expand our digital and delivery business; our ability to utilize, recognize, respond to, and effectively manage the immediacy of social media; our ability to achieve or maintain profitability in the future, especially if we continue to grow at an accelerated rate; our ability to realize the anticipated benefits from past and potential future acquisitions, investments or other strategic initiatives; our ability to manage our manufacturing and supply chain effectively; the impact of shortages, delays, or interruptions in the delivery of food items and other products; our ability to successfully optimize, operate, and manage our production facilities; the risks associated with our reliance on third parties; the impact of increases in food, commodity, energy, and other costs; the impact of increases in labor costs, labor shortages, and our ability to identify, hire, train, motivate and retain the right team members; our ability to attract, develop, and retain our management team and key team members; the impact of any cybersecurity breaches and our ability to respond effectively to technology threats or events; the impact of failures, or interruptions in, or our inability to effectively scale and adapt, our information technology systems; our ability to comply with, or changes in, the extensive laws or regulations requirements to which we are subject, including those related to privacy; the impact of economic factors and guest behavior trends; the impact of evolving rules and regulations with respect to environmental, social and governance matters; risks associated with our ability to secure, and protect our intellectual property; risks associated with civil unrest, acts of terrorism, threats to national security, the conflicts in
The forward-looking statements included in this press release are made only as of the date hereof. Any forward-looking statement made by us in this press release speaks only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them.
Non-GAAP Financial Measures:
In addition to our consolidated financial statements, which are prepared in accordance with GAAP, we present Adjusted EBITDA, Adjusted EBITDA Margin, general and administrative expenses, excluding equity-based compensation, and Free Cash Flow in this press release as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. We believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our operating performance. Management believes Adjusted EBITDA, Adjusted EBITDA Margin, general and administrative expenses, excluding equity-based compensation, and Free Cash Flow are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses Adjusted EBITDA, Adjusted EBITDA Margin, general and administrative expenses, excluding equity-based compensation, and Free Cash Flow to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide.
Adjusted EBITDA, Adjusted EBITDA Margin, general and administrative expenses, excluding equity-based compensation, and Free Cash Flow are not recognized terms under GAAP and should not be considered as alternatives to net income (loss), net income (loss) margin, or general and administrative expenses, as applicable, as measures of financial performance or cash provided by operating activities as measures of liquidity, or any other performance measure derived in accordance with GAAP. Additionally, Adjusted EBITDA and Free Cash Flow are not intended to be measures of free cash flow available for management’s discretionary use, as Adjusted EBITDA does not consider certain cash requirements such as interest payments, tax payments, and financing cash flows, and Free Cash Flow does not consider certain cash requirements such as financing cash flows. Adjusted EBITDA and Free Cash Flow should not be considered as measures of discretionary cash available to invest in the business growth or to reduce indebtedness. Our non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation, or as substitutes for analysis of our results as reported under GAAP. Some of these limitations are:
- Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not reflect the interest expense, or the cash requirements necessary to service interest payments, and Adjusted EBITDA and Free Cash Flow do not reflect cash flows from financing activities of our business;
- Adjusted EBITDA does not reflect period to period changes in taxes, income tax expense, or the cash necessary to pay income taxes;
- Adjusted EBITDA does not reflect the impact of earnings or cash charges resulting from matters we consider not to be indicative of our ongoing operations;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
- other companies in our industry may calculate Adjusted EBITDA, Adjusted EBITDA Margin, general and administrative expenses, excluding equity-based compensation, and Free Cash Flow differently than we do, limiting their usefulness as comparative measures.
CAVA GROUP, INC. |
|||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
|
|
|
|
||||
|
Sixteen Weeks Ended |
||||||
(in thousands, except per share amounts) |
April 21,
|
|
April 16,
|
||||
Revenue |
$ |
259,006 |
|
|
$ |
203,083 |
|
Operating expenses: |
|
|
|
||||
Restaurant operating expenses (excluding depreciation and amortization) |
|
|
|
||||
Food, beverage, and packaging |
|
73,947 |
|
|
|
59,118 |
|
Labor |
|
66,513 |
|
|
|
52,154 |
|
Occupancy |
|
20,422 |
|
|
|
16,599 |
|
Other operating expenses |
|
32,758 |
|
|
|
24,648 |
|
Total restaurant operating expenses |
|
193,640 |
|
|
|
152,519 |
|
General and administrative expenses |
|
33,840 |
|
|
|
29,024 |
|
Depreciation and amortization |
|
17,322 |
|
|
|
12,859 |
|
Restructuring and other costs |
|
282 |
|
|
|
2,215 |
|
Pre-opening costs |
|
3,379 |
|
|
|
5,999 |
|
Impairment and asset disposal costs |
|
1,290 |
|
|
|
2,719 |
|
Total operating expenses |
|
249,753 |
|
|
|
205,335 |
|
Income (loss) from operations |
|
9,253 |
|
|
|
(2,252 |
) |
Interest (income) expense, net |
|
(4,914 |
) |
|
|
25 |
|
Other income, net |
|
(78 |
) |
|
|
(174 |
) |
Income (loss) before income taxes |
|
14,245 |
|
|
|
(2,103 |
) |
Provision for income taxes |
|
252 |
|
|
|
38 |
|
Net income (loss) |
$ |
13,993 |
|
|
$ |
(2,141 |
) |
|
|
|
|
||||
Earnings (loss) per share: |
|
|
|
||||
Basic |
$ |
0.12 |
|
|
$ |
(1.30 |
) |
Diluted |
$ |
0.12 |
|
|
$ |
(1.30 |
) |
Weighted-average common shares outstanding: |
|
|
|
||||
Basic |
|
113,972 |
|
|
|
1,647 |
|
Diluted |
|
117,936 |
|
|
|
1,647 |
|
Financial information for the Company’s reportable segments was as follows:
|
Sixteen Weeks Ended |
||||||
($ in thousands) |
April 21,
|
|
April 16,
|
||||
Revenue |
|
|
|
||||
CAVA |
$ |
256,290 |
|
|
$ |
196,761 |
|
Zoes Kitchen |
|
— |
|
|
|
3,867 |
|
Other |
|
2,716 |
|
|
|
2,455 |
|
Total revenue |
|
259,006 |
|
|
|
203,083 |
|
Restaurant operating expenses (1) |
|
|
|
||||
CAVA |
|
191,674 |
|
|
|
146,778 |
|
Zoes Kitchen |
|
— |
|
|
|
4,044 |
|
Other |
|
1,966 |
|
|
|
1,697 |
|
Total restaurant operating expenses |
|
193,640 |
|
|
|
152,519 |
|
Restaurant-level profit (loss) |
|
|
|
||||
CAVA |
|
64,616 |
|
|
|
49,983 |
|
Zoes Kitchen |
|
— |
|
|
|
(177 |
) |
Other |
|
750 |
|
|
|
758 |
|
Total restaurant-level profit |
|
65,366 |
|
|
|
50,564 |
|
Reconciliation of restaurant-level profit to income (loss) before income taxes: |
|
|
|
||||
General and administrative expenses |
|
33,840 |
|
|
|
29,024 |
|
Depreciation and amortization |
|
17,322 |
|
|
|
12,859 |
|
Restructuring and other costs |
|
282 |
|
|
|
2,215 |
|
Pre-opening costs |
|
3,379 |
|
|
|
5,999 |
|
Impairment and asset disposal costs |
|
1,290 |
|
|
|
2,719 |
|
Interest (income) expense, net |
|
(4,914 |
) |
|
|
25 |
|
Other income, net |
|
(78 |
) |
|
|
(174 |
) |
Income (loss) before income taxes |
$ |
14,245 |
|
|
$ |
(2,103 |
) |
__________________
(1) |
Restaurant operating expenses consist of food, beverage, and packaging (excluding depreciation and amortization), labor, occupancy, and other operating expenses. |
CAVA is our single operating brand for our operations as we have converted and wound down our Zoes Kitchen operations, with the last conversion restaurant opening on October 20, 2023. As a result, we have highlighted the CAVA segment distinctly from CAVA Group results throughout this press release.
The following tables summarize the results of the CAVA segment:
|
Sixteen Weeks Ended |
|
|
||||||||||||||
|
April 21,
|
|
April 16,
|
|
Change |
||||||||||||
($ in thousands) |
$ |
|
% of Revenue |
|
$ |
|
% of Revenue |
|
$ |
|
% |
||||||
Restaurant revenue |
$ |
256,290 |
|
100.0 |
% |
|
$ |
196,761 |
|
100.0 |
% |
|
$ |
59,529 |
|
30.3 |
% |
Restaurant operating expenses (excluding depreciation and amortization) |
|||||||||||||||||
Food, beverage, and packaging |
|
72,195 |
|
28.2 |
|
|
|
56,454 |
|
28.7 |
|
|
|
15,741 |
|
27.9 |
|
Labor |
|
66,513 |
|
26.0 |
|
|
|
50,648 |
|
25.7 |
|
|
|
15,865 |
|
31.3 |
|
Occupancy |
|
20,422 |
|
8.0 |
|
|
|
16,091 |
|
8.2 |
|
|
|
4,331 |
|
26.9 |
|
Other operating expenses |
|
32,544 |
|
12.7 |
|
|
|
23,585 |
|
12.0 |
|
|
|
8,959 |
|
38.0 |
|
Total restaurant operating expenses |
|
191,674 |
|
74.8 |
|
|
|
146,778 |
|
74.6 |
|
|
|
44,896 |
|
30.6 |
|
Restaurant-level profit |
$ |
64,616 |
|
25.2 |
% |
|
$ |
49,983 |
|
25.4 |
% |
|
$ |
14,633 |
|
29.3 |
% |
The following table presents selected quarterly financial and other data:
|
Sixteen Weeks Ended |
|
Thirteen Weeks Ended |
|
Twelve Weeks Ended |
|
Twelve Weeks Ended |
|
Sixteen Weeks Ended |
||||||||||
|
April 21,
|
|
December 31,
|
|
October 1,
|
|
July 9,
|
|
April 16,
|
||||||||||
|
(Q1 2024) |
|
(Q4 2023) |
|
(Q3 2023) |
|
(Q2 2023) |
|
(Q1 2023) |
||||||||||
Net New CAVA Restaurant Openings |
|
14 |
|
|
|
19 |
|
|
|
11 |
|
|
|
16 |
|
|
|
26 |
|
CAVA Restaurants, end of period |
|
323 |
|
|
|
309 |
|
|
|
290 |
|
|
|
279 |
|
|
|
263 |
|
CAVA Same Restaurant Sales Growth(1) |
|
2.3 |
% |
|
|
11.4 |
% |
|
|
14.1 |
% |
|
|
18.2 |
% |
|
|
28.4 |
% |
CAVA AUV(2) |
$ |
2,608 |
|
|
$ |
2,639 |
|
|
$ |
2,640 |
|
|
$ |
2,599 |
|
|
$ |
2,547 |
|
CAVA Restaurant-Level Profit |
$ |
64,616 |
|
|
$ |
39,309 |
|
|
$ |
43,580 |
|
|
$ |
44,616 |
|
|
$ |
49,983 |
|
CAVA Restaurant-Level Profit Margin |
|
25.2 |
% |
|
|
22.4 |
% |
|
|
25.1 |
% |
|
|
26.1 |
% |
|
|
25.4 |
% |
CAVA Operating Weeks |
|
5,086 |
|
|
|
3,929 |
|
|
|
3,432 |
|
|
|
3,276 |
|
|
|
3,932 |
|
__________________
(1) |
CAVA Same Restaurant Sales Growth for Q4 2023 is presented excluding the impact of the 53rd week of fiscal year 2023. |
|
(2) |
For purposes of calculating CAVA AUV for Q1 2023, Q2 2023, and Q3 2023 the applicable measurement period is the entire trailing thirteen periods ended April 16, 2023, July 9, 2023, and October 1, 2023 respectively. For purposes of calculating CAVA AUV for Q4 2023 and Q1 2024 the applicable measurement period is the trailing thirteen periods ended December 31, 2023 and April 21, 2024, respectively, excluding the 53rd week of fiscal year 2023. |
The following table presents the Company’s selected balance sheet data:
($ in thousands) |
April 21,
|
|
December 31,
|
||
Cash and cash equivalents |
$ |
329,117 |
|
$ |
332,428 |
Total assets |
|
1,005,090 |
|
|
983,757 |
Total liabilities |
|
424,280 |
|
|
412,955 |
Total stockholders’ equity |
|
580,810 |
|
|
570,802 |
Total liabilities and stockholders' equity |
|
1,005,090 |
|
|
983,757 |
The following table shows the growth in our company-owned CAVA restaurant base:
|
Sixteen Weeks Ended |
||||
|
April 21,
|
|
April 16,
|
||
CAVA Restaurants |
|
|
|
||
Beginning of period |
309 |
|
|
237 |
|
New CAVA restaurant openings(1) |
15 |
|
|
27 |
|
Permanent closure |
(1 |
) |
|
(1 |
) |
End of period |
323 |
|
|
263 |
|
__________________
(1) |
New CAVA restaurant openings during the sixteen weeks ended April 16, 2023 includes converted Zoes Kitchen locations. |
Reconciliation of Non-GAAP Financial Measures
The following table reconciles net income (loss) to Adjusted EBITDA:
|
Sixteen Weeks Ended |
||||||
($ in thousands) |
April 21,
|
|
April 16,
|
||||
Net income (loss) |
$ |
13,993 |
|
|
$ |
(2,141 |
) |
Non-GAAP Adjustments |
|
|
|
||||
Interest (income) expense, net |
|
(4,914 |
) |
|
|
25 |
|
Provision for income taxes |
|
252 |
|
|
|
38 |
|
Depreciation and amortization |
|
17,322 |
|
|
|
12,859 |
|
Equity-based compensation |
|
5,170 |
|
|
|
1,205 |
|
Other income, net |
|
(78 |
) |
|
|
(174 |
) |
Impairment and asset disposal costs |
|
1,290 |
|
|
|
2,719 |
|
Restructuring and other costs |
|
282 |
|
|
|
2,215 |
|
Adjusted EBITDA |
$ |
33,317 |
|
|
$ |
16,746 |
|
|
|
|
|
||||
Revenue |
$ |
259,006 |
|
|
$ |
203,083 |
|
Net income (loss) margin |
|
5.4 |
% |
|
|
(1.1 |
)% |
Adjusted EBITDA margin |
|
12.9 |
% |
|
|
8.2 |
% |
The following table reconciles general and administrative expenses to general and administrative expenses, excluding equity-based compensation:
|
Sixteen Weeks Ended |
||||||
($ in thousands) |
April 21,
|
|
April 16,
|
||||
General and administrative expenses |
$ |
33,840 |
|
|
$ |
29,024 |
|
Equity-based compensation |
|
5,170 |
|
|
|
1,205 |
|
General and administrative expenses, excluding equity-based compensation |
$ |
28,670 |
|
|
$ |
27,819 |
|
|
|
|
|
||||
Revenue |
$ |
259,006 |
|
|
$ |
203,083 |
|
General and administrative expenses, as a percentage of revenue |
|
13.1 |
% |
|
|
14.3 |
% |
General and administrative expenses, excluding equity-based compensation, as a percentage of revenue |
|
11.1 |
% |
|
|
13.7 |
% |
The following table reconciles Net cash provided by operating activities to Free Cash Flow:
|
Sixteen Weeks Ended |
||||||
($ in thousands) |
April 21,
|
|
April 16,
|
||||
Net cash provided by operating activities |
$ |
38,386 |
|
|
$ |
25,679 |
|
Purchases of property and equipment |
|
(33,687 |
) |
|
|
(39,097 |
) |
Free Cash Flow |
$ |
4,699 |
|
|
$ |
(13,418 |
) |
Glossary:
The following definitions apply to these terms as used in this press release:
“Adjusted EBITDA” is defined as net income (loss) adjusted to exclude interest (income) expense, net, provision for income taxes, and depreciation and amortization, further adjusted to exclude equity-based compensation, other income, net, impairment and asset disposal costs, restructuring and other costs, and certain non-recurring public company costs, in each case, to the extent applicable in a given fiscal period;
“Adjusted EBITDA Margin” is defined as Adjusted EBITDA as a percentage of revenue;
“CAVA Average Unit Volume” or “CAVA AUV” represents total revenue of operating CAVA Restaurants that were open for the entire trailing thirteen periods, and digital kitchens sales for such period, divided by the number of operating CAVA Restaurants that were open for the entire trailing thirteen periods;
“CAVA digital kitchen” is defined to include kitchens used for third-party marketplace and native delivery, digital order pickup and/or centralized catering production, and that has neither in-restaurant dining nor customer-facing make lines;
“CAVA Digital Revenue Mix” represents the portion of CAVA revenue related to digital orders as a percentage of total CAVA revenue;
“CAVA hybrid kitchen” is defined to include kitchens that have enhanced kitchen capabilities to support centralized catering production and that also have in-restaurant dining and customer-facing make lines;
"CAVA Restaurant Operating Weeks" represents the aggregate number of weeks each of our CAVA Restaurants has been open in a given period;
“CAVA Restaurant-Level Profit,” a segment measure of profit and loss, represents CAVA Revenue less food, beverage, and packaging, labor, occupancy, and other operating expenses, excluding depreciation and amortization. CAVA Restaurant-Level Profit excludes pre-opening costs;
“CAVA Restaurant-Level Profit Margin” represents CAVA Restaurant-Level Profit as a percentage of CAVA Revenue;
“CAVA Restaurants” is defined to include all CAVA restaurants, including converted Zoes Kitchen locations and CAVA hybrid kitchens, that are open as of the end of the specific period. CAVA Restaurants exclude restaurants operating under license agreements and CAVA digital kitchens;
“CAVA Revenue” is defined to include all revenue attributable to CAVA restaurants in the specified period, excluding restaurants operating under license agreements;
“CAVA Same Restaurant Sales Growth” is defined as the period-over-period sales comparison for CAVA restaurants that have been open for 365 days or longer (including converted Zoes Kitchen locations that have been open for 365 days or longer after the completion of the conversion to a CAVA restaurant);
“Collaboration Center Organization” represents Team Members who work out of our restaurant collaboration center located in
“digital orders” means orders made through catering and digital channels, such as the CAVA app and the CAVA website. Digital orders include orders fulfilled through third-party marketplace and native delivery and digital order pick-up;
"Free Cash Flow" means net cash provided by operating activities less purchases of property and equipment;
“guest traffic” means the number of entrees ordered in-restaurant and through digital orders; and
“Net New CAVA Restaurant Openings” is defined as new CAVA restaurant openings (including CAVA restaurants converted from a Zoes Kitchen location) during a specified reporting period, net of any permanent CAVA restaurant closures during the same period.
We operate on a 52-week or 53-week fiscal year that ends on the last Sunday of the calendar year. In a 52-week fiscal year, the first fiscal quarter contains sixteen weeks and the second, third, and fourth fiscal quarters each contain twelve weeks. In a 53-week fiscal year, the first fiscal quarter contains sixteen weeks, the second and third fiscal quarters each contain twelve weeks, and the fourth fiscal quarter contains thirteen weeks. References to “thirteen periods” are to the 13 accounting periods we have in each fiscal year, with each accounting period being four weeks, except in a 53-week fiscal year which will contain one accounting period of five weeks.
Certain numerical figures have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240528798221/en/
Investor Relations:
Matt Milanovich, SVP, Finance
(202) 984-2558
matt.milanovich@cava.com
Media Relations:
Lynne Boschee, VP, Communications
media@cava.com
Source: CAVA Group, Inc.
FAQ
What was CAVA's revenue growth for Q1 2024?
How many new CAVA restaurants opened in the first quarter of 2024?
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What is CAVA's restaurant-level profit margin for Q1 2024?
How much did CAVA's adjusted EBITDA increase in Q1 2024?
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