CAVA Group Reports Fourth Quarter and Full Year Fiscal 2023 Results
- Impressive full-year revenue growth of 59.8% driven by strong same restaurant sales growth of 17.9%.
- 72 net new CAVA restaurant openings in fiscal 2023, reflecting a 30% increase in total restaurants year over year.
- Restaurant-level profit margin of 24.8% showcasing strong operational efficiency and profitability.
- Fiscal Q4 2023 revenue increased by 52.5% with net new restaurant openings of 19 and a profit margin of 22.4%.
- Digital revenue mix of 35.9% for Q4 and 36.0% for the full fiscal year, highlighting the company's digital growth strategy.
- Significant improvements in net income and adjusted EBITDA, indicating a positive financial trajectory.
- None.
Insights
The reported 59.8% revenue growth and 17.9% same restaurant sales growth for CAVA Group, Inc. are substantial figures that reflect a strong performance in the fast-casual dining sector. Particularly noteworthy is the 94.8% growth in restaurant-level profit and the 24.8% restaurant-level profit margin, which significantly outpaces the industry average of around 15-20%. This indicates effective cost management and an ability to attract customers despite a potentially challenging economic climate.
Additionally, the shift toward a 36.0% digital revenue mix suggests a successful adaptation to the growing trend of online ordering, which is likely to support sustained growth as consumer habits continue to evolve. The positive net income, following a previous net loss, indicates a turnaround in profitability that could reassure investors about the company's financial health and strategic direction.
The projected 3.0% to 5.0% same restaurant sales growth for fiscal 2024, while lower than the previous year's, suggests a cautious yet positive outlook, taking into account the potential normalization of growth rates as the company scales. The anticipated restaurant-level profit margin of 22.7% to 23.3% also reflects a slight contraction, which may be due to expected increases in input costs or strategic investments in expansion.
CAVA Group's aggressive expansion strategy, with 72 net new restaurant openings and a 30% increase in its footprint, is a clear indicator of its market penetration and brand acceptance. The expansion aligns with the growing consumer demand for healthier dining options, which positions CAVA favorably within the fast-casual segment. The 17.9% same restaurant sales growth is particularly significant as it suggests that CAVA's growth is not solely reliant on new store openings but also on increasing patronage and spend at existing locations.
The emphasis on a digital revenue mix is also a strategic response to the industry's digitization trend. The nearly 36% digital mix underscores the importance of an omnichannel approach in the current market, where convenience and digital engagement are key drivers of customer loyalty and repeat business.
The financial outcomes reported by CAVA Group reflect broader economic trends, such as the resilience of certain segments of the restaurant industry despite inflationary pressures. The improved profit margins and significant revenue growth suggest that CAVA has effectively leveraged economies of scale and managed costs, which is commendable in an environment where many businesses are facing margin compression due to rising input costs.
However, the projected moderation in same restaurant sales growth for fiscal 2024 could be indicative of a maturing business or a more cautious consumer spending outlook, potentially influenced by macroeconomic factors such as interest rate changes, employment levels and consumer confidence. The ability of CAVA to maintain profitability and growth amidst these factors will be an important aspect to monitor.
Full Year CAVA Revenue Growth of
72 Net New CAVA Restaurant Openings During Fiscal 2023
Full Year CAVA Restaurant-Level Profit Margin of
“2023 was a landmark year for CAVA, one that demonstrated our significant whitespace opportunity and the strength of our operating model and Team Members as we define the next big cultural cuisine category. Following a successful IPO, we delivered three consecutive quarters of positive net income, driven by full-year revenue growth of nearly
Fiscal Fourth Quarter 2023 Highlights:
-
CAVA Revenue grew
52.5% to$175.5 million $115.0 million -
Net New CAVA Restaurant Openings of 19, bringing total CAVA Restaurants to 309, a
30.4% increase in total CAVA Restaurants year over year. -
CAVA Same Restaurant Sales Growth of
11.4% , which excludes the 53rd week of fiscal 2023. -
CAVA Restaurant-Level Profit of
$39.3 million 70.7% over the prior year quarter, with CAVA Restaurant-Level Profit Margin of22.4% , a 240 basis point increase over the prior year quarter. -
CAVA Digital Revenue Mix was
35.9% . -
CAVA Group Net Income of
$2.0 million $18.8 million -
CAVA Group Adjusted EBITDA of
$15.7 million $3.5 million
Fiscal Year 2023 Highlights:
-
CAVA Revenue grew
59.8% to$717.1 million $448.6 million - Net New CAVA Restaurant Openings of 72
-
CAVA Same Restaurant Sales Growth of
17.9% , which excludes the 53rd week of fiscal 2023. -
CAVA AUV of
$2.6 million $2.4 million -
CAVA Restaurant-Level Profit of
$177.5 million 94.8% over the prior year, with CAVA Restaurant-Level Profit Margin of24.8% , a 450 basis point increase over the prior year. -
CAVA Digital Revenue Mix was
36.0% . -
CAVA Group Net Income of
$13.3 million $59.0 million -
CAVA Group Adjusted EBITDA of
$73.8 million $12.6 million
CAVA Fiscal Fourth Quarter 2023 Review:
CAVA Revenue was
CAVA Restaurant-Level Profit Margin was
CAVA Group Fiscal Fourth Quarter 2023 Review:
General and administrative expenses were
Net income was
Adjusted EBITDA1 was
CAVA Fiscal 2023 Review:
CAVA Revenue was
CAVA Restaurant-Level Profit Margin was
CAVA Group Fiscal 2023 Review:
General and administrative expenses were
Net income was
Adjusted EBITDA1 was
Fiscal 2023 includes a 53rd week that is not included in fiscal 2022, which contributed to an increase in CAVA Revenue of approximately
__________________ |
||
1 |
General and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs, and Adjusted EBITDA 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 2024 Outlook:
CAVA Group anticipates the following for fiscal 2024:
Net New CAVA Restaurant Openings |
|
48 to 52 |
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 February 27, 2024 at 8:30 AM Eastern Time to discuss fourth quarter and fiscal year 2023 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, and general and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs, 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, and general and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs, 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, and general and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs, 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, and general and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs, 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 Adjusted EBITDA Margin are not intended to be measures of free cash flow available for management’s discretionary use, as they do not consider certain cash requirements such as interest payments, tax payments, and debt service requirements. Adjusted EBITDA and Adjusted EBITDA Margin 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 or principal payments, on any applicable debts;
- 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 and general and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs, differently than we do, limiting their usefulness as comparative measures.
CAVA GROUP, INC. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Thirteen Weeks Ended |
|
Twelve Weeks Ended |
|
Fiscal Year Ended |
||||||||||
(in thousands, except per share amounts) |
December 31,
|
|
December 25,
|
|
December 31,
|
|
December 25,
|
||||||||
Revenue |
$ |
177,170 |
|
|
$ |
129,935 |
|
|
$ |
728,700 |
|
|
$ |
564,119 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Restaurant operating costs (excluding depreciation and amortization) |
|
|
|
|
|
|
|
||||||||
Food, beverage, and packaging |
|
51,522 |
|
|
|
40,726 |
|
|
|
213,458 |
|
|
|
179,988 |
|
Labor |
|
48,842 |
|
|
|
35,945 |
|
|
|
187,326 |
|
|
|
157,891 |
|
Occupancy |
|
14,538 |
|
|
|
12,413 |
|
|
|
58,319 |
|
|
|
53,669 |
|
Other operating expenses |
|
22,404 |
|
|
|
17,024 |
|
|
|
89,251 |
|
|
|
74,587 |
|
Total restaurant operating expenses |
|
137,306 |
|
|
|
106,108 |
|
|
|
548,354 |
|
|
|
466,135 |
|
General and administrative expenses |
|
24,674 |
|
|
|
16,269 |
|
|
|
101,491 |
|
|
|
70,037 |
|
Depreciation and amortization |
|
12,337 |
|
|
|
10,941 |
|
|
|
47,433 |
|
|
|
42,724 |
|
Restructuring and other costs |
|
920 |
|
|
|
934 |
|
|
|
6,080 |
|
|
|
5,923 |
|
Pre-opening costs |
|
2,909 |
|
|
|
5,088 |
|
|
|
15,718 |
|
|
|
19,313 |
|
Impairment and asset disposal costs |
|
604 |
|
|
|
9,905 |
|
|
|
4,899 |
|
|
|
19,753 |
|
Total operating expenses |
|
178,750 |
|
|
|
149,245 |
|
|
|
723,975 |
|
|
|
623,885 |
|
(Loss) income from operations |
|
(1,580 |
) |
|
|
(19,310 |
) |
|
|
4,725 |
|
|
|
(59,766 |
) |
Interest (income) expense, net |
|
(4,222 |
) |
|
|
(215 |
) |
|
|
(8,852 |
) |
|
|
47 |
|
Other income, net |
|
(59 |
) |
|
|
(275 |
) |
|
|
(471 |
) |
|
|
(919 |
) |
Income (loss) before income taxes |
|
2,701 |
|
|
|
(18,820 |
) |
|
|
14,048 |
|
|
|
(58,894 |
) |
Provision for income taxes |
|
652 |
|
|
|
26 |
|
|
|
768 |
|
|
|
93 |
|
Net income (loss) |
$ |
2,049 |
|
|
$ |
(18,846 |
) |
|
$ |
13,280 |
|
|
$ |
(58,987 |
) |
Earnings (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.02 |
|
|
$ |
(13.72 |
) |
|
$ |
0.22 |
|
|
$ |
(44.41 |
) |
Diluted |
$ |
0.02 |
|
|
$ |
(13.72 |
) |
|
$ |
0.21 |
|
|
$ |
(44.41 |
) |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
113,642 |
|
|
|
1,374 |
|
|
|
60,512 |
|
|
|
1,328 |
|
Diluted |
|
117,250 |
|
|
|
1,374 |
|
|
|
63,448 |
|
|
|
1,328 |
|
Financial information for the Company’s reportable segments was as follows for the periods presented:
|
Thirteen Weeks
|
|
Twelve Weeks
|
|
Fiscal Year Ended |
||||||||||
($ in thousands) |
December 31,
|
|
December 25,
|
|
December 31,
|
|
December 25,
|
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
CAVA |
$ |
175,451 |
|
|
$ |
115,048 |
|
|
$ |
717,060 |
|
|
$ |
448,594 |
|
Zoes Kitchen |
|
— |
|
|
|
13,396 |
|
|
|
3,867 |
|
|
|
108,392 |
|
Other |
|
1,719 |
|
|
|
1,491 |
|
|
|
7,773 |
|
|
|
7,133 |
|
Total revenue |
|
177,170 |
|
|
|
129,935 |
|
|
|
728,700 |
|
|
|
564,119 |
|
Restaurant-level operating expenses1 |
|
|
|
|
|
|
|
||||||||
CAVA |
|
136,142 |
|
|
|
92,021 |
|
|
|
539,572 |
|
|
|
357,501 |
|
Zoes Kitchen |
|
— |
|
|
|
12,795 |
|
|
|
4,044 |
|
|
|
102,292 |
|
Other |
|
1,164 |
|
|
|
1,292 |
|
|
|
4,738 |
|
|
|
6,342 |
|
Total restaurant-level operating expenses |
|
137,306 |
|
|
|
106,108 |
|
|
|
548,354 |
|
|
|
466,135 |
|
Restaurant-level profit (loss) |
|
|
|
|
|
|
|
||||||||
CAVA |
|
39,309 |
|
|
|
23,027 |
|
|
|
177,488 |
|
|
|
91,093 |
|
Zoes Kitchen |
|
— |
|
|
|
601 |
|
|
|
(177 |
) |
|
|
6,100 |
|
Other |
|
555 |
|
|
|
199 |
|
|
|
3,035 |
|
|
|
791 |
|
Total restaurant-level profit |
|
39,864 |
|
|
|
23,827 |
|
|
|
180,346 |
|
|
|
97,984 |
|
Reconciliation of restaurant-level profit to income (loss) before income taxes: |
|
|
|
|
|
|
|
||||||||
General and administrative expenses |
|
24,674 |
|
|
|
16,269 |
|
|
|
101,491 |
|
|
|
70,037 |
|
Depreciation and amortization |
|
12,337 |
|
|
|
10,941 |
|
|
|
47,433 |
|
|
|
42,724 |
|
Restructuring and other costs |
|
920 |
|
|
|
934 |
|
|
|
6,080 |
|
|
|
5,923 |
|
Pre-opening costs |
|
2,909 |
|
|
|
5,088 |
|
|
|
15,718 |
|
|
|
19,313 |
|
Impairment and asset disposal costs |
|
604 |
|
|
|
9,905 |
|
|
|
4,899 |
|
|
|
19,753 |
|
Interest (income) expense, net |
|
(4,222 |
) |
|
|
(215 |
) |
|
|
(8,852 |
) |
|
|
47 |
|
Other income, net |
|
(59 |
) |
|
|
(275 |
) |
|
|
(471 |
) |
|
|
(919 |
) |
Income (loss) before income taxes |
$ |
2,701 |
|
|
$ |
(18,820 |
) |
|
$ |
14,048 |
|
|
$ |
(58,894 |
) |
| __________________ | ||
| (1) | Restaurant-level operating expenses consist of food, beverage, and packaging (excluding depreciation and amortization), labor, occupancy, and other operating expenses. |
|
CAVA is now 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 for the fiscal quarters and fiscal years ended December 31, 2023 and December 25, 2022:
|
Thirteen Weeks Ended |
|
Twelve Weeks Ended |
|
|
||||||||||||
|
December 31,
|
|
December 25,
|
|
Change |
||||||||||||
($ in thousands) |
$ |
|
% of Revenue |
|
$ |
|
% of Revenue |
|
$ |
|
% |
||||||
Restaurant revenue |
$ |
175,451 |
|
100.0 |
% |
|
$ |
115,048 |
|
100.0 |
% |
|
$ |
60,403 |
|
52.5 |
% |
Restaurant operating expenses (excluding depreciation and amortization) |
|||||||||||||||||
Food, beverage, and packaging |
|
50,517 |
|
28.8 |
|
|
|
35,502 |
|
30.9 |
|
|
|
15,015 |
|
42.3 |
|
Labor |
|
48,842 |
|
27.8 |
|
|
|
31,416 |
|
27.3 |
|
|
|
17,426 |
|
55.5 |
|
Occupancy |
|
14,538 |
|
8.3 |
|
|
|
10,741 |
|
9.3 |
|
|
|
3,797 |
|
35.4 |
|
Other operating expenses |
|
22,245 |
|
12.7 |
|
|
|
14,362 |
|
12.5 |
|
|
|
7,883 |
|
54.9 |
|
Total restaurant operating expenses |
|
136,142 |
|
77.6 |
|
|
|
92,021 |
|
80.0 |
|
|
|
44,121 |
|
47.9 |
|
Restaurant-level profit |
$ |
39,309 |
|
22.4 |
% |
|
$ |
23,027 |
|
20.0 |
% |
|
$ |
16,282 |
|
70.7 |
% |
|
Fiscal Year Ended |
|
|
||||||||||||||
|
December 31,
|
|
December 25,
|
|
Change |
||||||||||||
($ in thousands) |
$ |
|
% of Revenue |
|
$ |
|
% of Revenue |
|
$ |
|
% |
||||||
Restaurant revenue |
$ |
717,060 |
|
100.0 |
% |
|
$ |
448,594 |
|
100.0 |
% |
|
$ |
268,466 |
|
59.8 |
% |
Restaurant operating expenses (excluding depreciation and amortization) |
|||||||||||||||||
Food, beverage, and packaging |
|
208,237 |
|
29.0 |
|
|
|
140,760 |
|
31.4 |
|
|
|
67,477 |
|
47.9 |
|
Labor |
|
185,820 |
|
25.9 |
|
|
|
121,318 |
|
27.0 |
|
|
|
64,502 |
|
53.2 |
|
Occupancy |
|
57,811 |
|
8.1 |
|
|
|
40,855 |
|
9.1 |
|
|
|
16,956 |
|
41.5 |
|
Other operating expenses |
|
87,704 |
|
12.2 |
|
|
|
54,568 |
|
12.2 |
|
|
|
33,136 |
|
60.7 |
|
Total restaurant operating expenses |
|
539,572 |
|
75.2 |
|
|
|
357,501 |
|
79.7 |
|
|
|
182,071 |
|
50.9 |
|
Restaurant-level profit |
$ |
177,488 |
|
24.8 |
% |
|
$ |
91,093 |
|
20.3 |
% |
|
$ |
86,395 |
|
94.8 |
% |
The following table presents selected quarterly financial and other data for the periods indicated:
|
Thirteen
|
|
Twelve Weeks
|
|
Twelve Weeks
|
|
Sixteen
|
|
Twelve Weeks
|
||||||||||
|
December 31,
|
|
October 1,
|
|
July 9,
|
|
April 16,
|
|
December 25,
|
||||||||||
($ in thousands) |
(Q4 2023) |
|
(Q3 2023) |
|
(Q2 2023) |
|
(Q1 2023) |
|
(Q4 2022) |
||||||||||
Net New CAVA Restaurant Openings |
|
19 |
|
|
|
11 |
|
|
|
16 |
|
|
|
26 |
|
|
|
23 |
|
CAVA Restaurants, end of period |
|
309 |
|
|
|
290 |
|
|
|
279 |
|
|
|
263 |
|
|
|
237 |
|
CAVA Same Restaurant Sales Growth1 |
|
11.4 |
% |
|
|
14.1 |
% |
|
|
18.2 |
% |
|
|
28.4 |
% |
|
|
14.8 |
% |
CAVA AUV2 |
$ |
2,639 |
|
|
$ |
2,640 |
|
|
$ |
2,599 |
|
|
$ |
2,547 |
|
|
$ |
2,398 |
|
CAVA Restaurant-Level Profit |
$ |
39,309 |
|
|
$ |
43,580 |
|
|
$ |
44,616 |
|
|
$ |
49,983 |
|
|
$ |
23,027 |
|
CAVA Restaurant-Level Profit Margin |
|
22.4 |
% |
|
|
25.1 |
% |
|
|
26.1 |
% |
|
|
25.4 |
% |
|
|
20.0 |
% |
CAVA Restaurant Operating Weeks |
|
3,929 |
|
|
|
3,432 |
|
|
|
3,276 |
|
|
|
3,932 |
|
|
|
2,687 |
|
| __________________ | ||
| 1 | CAVA Same Restaurant Sales Growth for fiscal 2023 is presented excluding the impact of the 53rd week. |
|
| 2 | For purposes of calculating CAVA AUV for the thirteen weeks ended December 31, 2023, the applicable measurement period is the trailing thirteen periods ended December 31, 2023, excluding the 53rd week. For purposes of calculating CAVA AUV for the twelve weeks ended October 1, 2023, the twelve weeks ended July 9, 2023, the sixteen weeks ended April 16, 2023, and the twelve weeks ended December 25, 2022, the applicable measurement period is the entire trailing thirteen periods ended October 1, 2023, July 9, 2023, April 16, 2023 and December 25, 2022, respectively. |
|
The following tables present the Company’s selected balance sheet and cash flow data as of and for the periods indicated:
($ in thousands) |
December 31,
|
|
December 25,
|
|||
Cash and cash equivalents |
$ |
332,428 |
|
$ |
39,125 |
|
Total assets |
|
983,757 |
|
|
583,883 |
|
Total liabilities |
|
412,955 |
|
|
370,078 |
|
Redeemable preferred stock |
|
— |
|
|
662,308 |
|
Total stockholders’ equity |
|
570,802 |
|
|
(448,503 |
) |
Total liabilities, preferred stock and stockholders' equity |
|
983,757 |
|
|
583,883 |
|
|
Fiscal Year Ended |
||||||
($ in thousands) |
December 31,
|
|
December 25,
|
||||
Net cash provided by operating activities |
$ |
97,101 |
|
|
$ |
6,038 |
|
Net cash used in investing activities |
|
(138,806 |
) |
|
|
(104,161 |
) |
Net cash provided by (used in) financing activities |
|
335,008 |
|
|
|
(3,084 |
) |
Net change in cash and cash equivalents |
$ |
293,303 |
|
|
$ |
(101,207 |
) |
The following table shows the growth in our company-owned CAVA restaurant base:
|
Thirteen Weeks Ended |
|
Twelve Weeks Ended |
|
Fiscal Year Ended |
||||
|
December 31,
|
|
December 25,
|
|
December 31,
|
|
December 25,
|
||
Beginning of period |
290 |
|
214 |
|
237 |
|
|
164 |
|
New CAVA restaurant openings, including converted Zoes Kitchen locations |
19 |
|
23 |
|
73 |
|
|
74 |
|
Permanent closure |
— |
|
— |
|
(1 |
) |
|
(1 |
) |
End of period |
309 |
|
237 |
|
309 |
|
|
237 |
|
Reconciliation of Non-GAAP Financial Measures
The following table reconciles net income (loss) to Adjusted EBITDA for the periods indicated:
|
Thirteen Weeks
|
|
Twelve Weeks
|
|
Fiscal Year Ended |
||||||||||
($ in thousands) |
December 31,
|
|
December 25,
|
|
December 31,
|
|
December 25,
|
||||||||
Net income (loss) |
$ |
2,049 |
|
|
$ |
(18,846 |
) |
|
$ |
13,280 |
|
|
$ |
(58,987 |
) |
Non-GAAP Adjustments |
|
|
|
|
|
|
|
||||||||
Interest (income) expense, net |
|
(4,222 |
) |
|
|
(215 |
) |
|
|
(8,852 |
) |
|
|
47 |
|
Provision for income taxes |
|
652 |
|
|
|
26 |
|
|
|
768 |
|
|
|
93 |
|
Depreciation and amortization |
|
12,337 |
|
|
|
10,941 |
|
|
|
47,433 |
|
|
|
42,724 |
|
Equity-based compensation |
|
3,409 |
|
|
|
1,017 |
|
|
|
9,575 |
|
|
|
3,981 |
|
Other income, net |
|
(59 |
) |
|
|
(275 |
) |
|
|
(471 |
) |
|
|
(919 |
) |
Impairment and asset disposal costs |
|
604 |
|
|
|
9,905 |
|
|
|
4,899 |
|
|
|
19,753 |
|
Restructuring and other costs |
|
920 |
|
|
|
934 |
|
|
|
6,080 |
|
|
|
5,923 |
|
Certain non-recurring public company costs |
|
— |
|
|
|
— |
|
|
|
1,113 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
15,690 |
|
|
$ |
3,487 |
|
|
$ |
73,825 |
|
|
$ |
12,615 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
177,170 |
|
|
$ |
129,935 |
|
|
$ |
728,700 |
|
|
$ |
564,119 |
|
Net income (loss) margin |
|
1.2 |
% |
|
|
(14.5 |
)% |
|
|
1.8 |
% |
|
|
(10.5 |
)% |
Adjusted EBITDA margin |
|
8.9 |
% |
|
|
2.7 |
% |
|
|
10.1 |
% |
|
|
2.2 |
% |
The following table reconciles general and administrative expenses to general and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs for the periods indicated:
|
Thirteen Weeks
|
|
Twelve Weeks
|
|
Fiscal Year Ended |
||||||||||
($ in thousands) |
December 31,
|
|
December 25,
|
|
December 31,
|
|
December 25,
|
||||||||
General and administrative expenses |
$ |
24,674 |
|
|
$ |
16,269 |
|
|
$ |
101,491 |
|
|
$ |
70,037 |
|
Equity-based compensation |
|
3,409 |
|
|
|
1,017 |
|
|
|
9,575 |
|
|
|
3,981 |
|
Certain non-recurring public company costs |
|
— |
|
|
|
— |
|
|
|
1,113 |
|
|
|
— |
|
General and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs |
$ |
21,265 |
|
|
$ |
15,252 |
|
|
$ |
90,803 |
|
|
$ |
66,056 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
177,170 |
|
|
$ |
129,935 |
|
|
$ |
728,700 |
|
|
$ |
564,119 |
|
General and administrative expenses, as a percentage of revenue |
|
13.9 |
% |
|
|
12.5 |
% |
|
|
13.9 |
% |
|
|
12.4 |
% |
General and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs, as a percentage of revenue |
|
12.0 |
% |
|
|
11.7 |
% |
|
|
12.5 |
% |
|
|
11.7 |
% |
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;
“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 Revenue Mix” represents the portion of CAVA revenue related to digital orders as a percentage of total CAVA revenue;
"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 a license agreement;
“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);
“digital orders” means orders made through catering, 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;
“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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226965885/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 full-year revenue growth percentage for fiscal 2023?
How many net new CAVA restaurant openings occurred during fiscal 2023?
What was CAVA's restaurant-level profit margin for the full year of fiscal 2023?
What was the revenue increase percentage for CAVA in fiscal Q4 2023?
What was the digital revenue mix for CAVA in the fiscal fourth quarter of 2023?
What was CAVA's net income for the fiscal fourth quarter of 2023?
