CAVA Group Reports Fourth Quarter and Full Year Fiscal 2024 Results

Rhea-AI Summary

CAVA Group reported strong financial results for Q4 and full year 2024. The Mediterranean fast-casual restaurant chain achieved 35.1% revenue growth (excluding 53rd week of 2023), reaching $954.3 million for the full year. Key highlights include:

- Same Restaurant Sales Growth of 13.4% with 8.7% traffic growth
- 58 net new restaurant openings in 2024, reaching 367 total locations
- Average Unit Volume (AUV) of $2.9 million
- Restaurant-Level Profit Margin of 25.0%
- Digital Revenue Mix of 36.4%

Q4 2024 showed particularly strong performance with 21.2% Same Restaurant Sales Growth and revenue of $225.1 million. The company's net income reached $130.3 million for the full year, including an $80.1 million tax benefit from valuation allowance release.

Positive

• Revenue growth of 35.1% to $954.3M in 2024
• Strong same-store sales growth of 13.4% with 8.7% traffic increase
• 58 new restaurant openings, 18.8% location growth
• High AUV of $2.9M per restaurant
• 25% restaurant-level profit margin
• Net income of $130.3M
• Free cash flow of $52.9M

Negative

• Increased food costs due to steak rollout
• Higher wage investments impacting margins
• General and administrative expenses increased to $120.5M

Insights

Financial Analyst

CAVA Group's fiscal 2024 results reveal an extraordinary growth story that stands out even in the competitive fast-casual restaurant segment. The 35.1% revenue growth (excluding the 53rd week effect) alongside 13.4% same-restaurant sales growth demonstrates CAVA is successfully establishing Mediterranean as a major cuisine category in American fast-casual dining.

What's particularly impressive is the traffic growth of nearly 9% for the full year, accelerating to 15.6% in Q4. This traffic performance dramatically outpaces most restaurant peers who are struggling with flat or declining traffic in the current consumer environment. The acceleration in Q4 suggests CAVA's value proposition is gaining stronger consumer traction rather than losing momentum.

The company's unit economics are exceptional, with average unit volumes of $2.9 million and restaurant-level profit margins of 25%. This combination creates a powerful flywheel effect: strong unit economics fund expansion, which increases scale efficiencies, which further improves unit economics. Few restaurant concepts achieve this virtuous cycle so effectively.

CAVA's digital revenue mix of 36.4% for the year provides several strategic advantages: higher average tickets, valuable customer data, and operational efficiencies. The reimagined loyalty program mentioned appears to be strengthening this digital ecosystem rather than merely serving as a discount mechanism.

The successful launch of grilled steak demonstrates CAVA's menu innovation capabilities, though it did create some margin pressure from higher input costs. This strategic trade-off appears worthwhile as it expands CAVA's addressable market to protein-focused consumers who might otherwise choose other fast-casual options.

From a growth runway perspective, CAVA's current 367 restaurants represent just a fraction of their potential footprint when compared to mature fast-casual concepts with 2,000+ locations. Their 18.8% unit growth this year strikes an effective balance between aggressive expansion and maintaining operational excellence.

The significant free cash flow generation ($52.9 million) provides flexibility for continued self-funded growth without dilutive financing. General and administrative expenses as a percentage of revenue declined by 180 basis points year-over-year (excluding certain items), indicating effective scaling of the corporate infrastructure.

While the market will likely focus on the impressive headline numbers, the more subtle indicators of operational excellence and scalability suggest CAVA has built a durable growth model that can sustain expansion for years to come. The key question for 2025 will be whether they can maintain double-digit same-restaurant sales growth as they lap these exceptional 2024 results.

Restaurant Industry Expert

CAVA's fiscal 2024 results represent one of the most impressive operational performances in the restaurant industry, with metrics that outpace nearly all public restaurant peers. Their 13.4% same-restaurant sales growth with traffic growth of nearly 9% stands in stark contrast to the broader fast-casual segment, where many established brands are reporting flat to negative traffic amid consumer spending pressures.

For context, Chipotle's most recent quarter showed comparable restaurant sales growth of 7.4% with approximately 4.5% traffic growth, while Sweetgreen reported 5% same-store sales with roughly flat traffic. CAVA's performance is nearly double these industry darlings, suggesting they've found a rare sweet spot in value perception, culinary appeal, and operational execution.

The restaurant-level profit margin of 25.0% is exceptional by industry standards. This margin strength is particularly noteworthy given their national rollout of grilled steak, which typically carries higher food costs. The ability to absorb this premium protein addition while expanding margins by 20 basis points year-over-year demonstrates remarkable supply chain management and pricing power.

CAVA's $2.9 million AUVs on what is likely a smaller footprint than many competitors creates outstanding sales-per-square-foot efficiency. This metric, combined with their 25% restaurant-level margins, produces a unit economic model that should generate cash-on-cash returns well above industry averages, enabling them to attract premium real estate and capital partners.

Their digital ecosystem appears sophisticated beyond their years as a public company. The 36.4% digital revenue mix approaches Chipotle's industry-leading ~40% digital penetration, but CAVA has achieved this with a significantly smaller marketing budget and loyalty program membership base. The reimagined loyalty program mentioned likely shifts from simple discounting to personalization and frequency-driving mechanisms that enhance lifetime customer value.

The company's labor model innovation deserves particular attention in today's challenging staffing environment. While details aren't specified, the initiative suggests CAVA is addressing both efficiency and employee experience – critical factors as they expand into new markets with varying labor dynamics.

Most remarkable is the acceleration to 21.2% same-restaurant sales in Q4 (15.6% traffic), indicating their value proposition is gaining stronger consumer traction rather than experiencing the law of large numbers that typically slows growth. This acceleration creates a powerful tailwind entering 2025.

CAVA appears to be executing a Chipotle-like playbook with a differentiated Mediterranean offering, creating what could become the next multi-billion dollar fast-casual platform. Their current 367 restaurants against Chipotle's 3,500+ suggests a growth runway that could extend for a decade or more if they maintain operational excellence through expansion.

Food Industry Strategist

CAVA's fiscal 2024 results confirm that Mediterranean cuisine has successfully crossed the chasm from niche offering to mainstream fast-casual category. The 13.4% same-restaurant sales growth with nearly 9% traffic growth reveals a concept that's achieving what food industry strategists call "craveability at scale" – delivering consistent, distinctive flavors that drive repeat visits across diverse markets.

CAVA's menu architecture represents a masterclass in culinary positioning. They've created a platform that balances authentic Mediterranean flavor profiles with American fast-casual customization expectations. The successful national rollout of grilled steak demonstrates their ability to expand their protein portfolio without diluting their Mediterranean identity – something many ethnic-inspired concepts struggle with as they grow.

This protein expansion is strategically significant beyond just adding menu variety. By offering premium proteins alongside their traditional options, CAVA effectively broadens their competitive set, pulling customers who might otherwise choose more protein-centric concepts like Chipotle or even fast-casual burger chains. The acceleration to 21.2% same-restaurant sales in Q4 suggests this menu evolution is expanding their addressable market rather than cannibalizing existing offerings.

CAVA's supply chain execution deserves particular attention. Maintaining consistent food quality while expanding to 367 locations requires sophisticated ingredient sourcing and distribution systems. Mediterranean cuisine presents unique supply chain challenges with its reliance on fresh produce, specialty ingredients like tahini and feta, and scratch-made components. Their ability to maintain 25% restaurant-level margins while navigating these complexities indicates exceptional supply chain management.

The 36.4% digital revenue mix represents more than just an ordering channel – it's creating a data ecosystem that enables CAVA to understand flavor preferences, ordering patterns, and price elasticity at a granular level. Their reimagined loyalty program likely leverages this data for personalization that drives frequency and average check – the two fundamental levers of restaurant growth.

CAVA's culinary positioning aligns perfectly with evolving consumer preferences. Their menu naturally delivers on health perception through fresh vegetables, lean proteins, and plant-forward options, without explicitly marketing as a "health food" concept. This subtle positioning avoids the trap that has constrained growth for overtly health-focused chains while still appealing to nutrition-conscious consumers.

The company's ability to maintain operational execution while opening 58 new restaurants (18.8% unit growth) is remarkable. Their new labor model mentioned in the results likely addresses a critical scaling challenge: how to consistently execute a relatively complex Mediterranean menu with fresh components in a tight labor market across diverse geographies.

Looking ahead, CAVA appears positioned to become the defining brand in the Mediterranean category, much as Chipotle did for fast-casual Mexican. Their current 367 restaurants against the thousands of units operated by mature fast-casual leaders suggests a multi-year growth runway if they continue executing at this level.

Full Year CAVA Revenue Growth of 35.1% (Excluding 53rd Week of Fiscal 2023) Driven by CAVA Same Restaurant Sales Growth of 13.4%

58 Net New CAVA Restaurant Openings During Fiscal 2024

Full Year CAVA Restaurant-Level Profit Margin of 25.0%

WASHINGTON--(BUSINESS WIRE)-- CAVA Group, Inc. (NYSE: CAVA) (“CAVA Group” or the “Company”), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced financial results for its fiscal fourth quarter and fiscal year ended December 29, 2024.

“2024 was another year of extraordinary growth and success for CAVA as we established Mediterranean as the next major cultural cuisine category and delivered our unique value proposition, that is clearly resonating with modern consumers. CAVA Same Restaurant Sales grew 13.4% in 2024, including traffic growth of nearly 9%. We opened 58 net new restaurants and, driven by our powerful unit economic engine, generated average unit volume of $2.9 million. In addition, we continued to execute across our strategic initiatives. The launch of our grilled steak main exceeded our expectations, we rolled out a new labor model to deliver a better operator and guest experience, and, through our reimagined loyalty program, we gave guests more reasons to come to CAVA and come back more often,” said Brett Schulman, Co-Founder and CEO.

Fiscal Fourth Quarter 2024 Highlights:

• CAVA Revenue grew 28.3% to $225.1 million as compared to $175.5 million in the prior year quarter. Excluding $10.9 million of revenue in the 53rd week of fiscal 2023, CAVA Revenue grew 36.8%.
• Net New CAVA Restaurant Openings of 15, bringing total CAVA Restaurants to 367, an 18.8% increase in total CAVA Restaurants year over year.
• CAVA Same Restaurant Sales Growth of 21.2%
• CAVA Restaurant-Level Profit of $50.4 million or growth of 28.2% over the prior year quarter, with CAVA Restaurant-Level Profit Margin of 22.4%, an increase of 50 basis points excluding the 53rd week of fiscal 2023.
• CAVA Digital Revenue Mix was 36.8%.
• CAVA Group Net Income of $78.6 million compared to $2.0 million in the prior year quarter. Excluding an $80.1 million net benefit from the release of the valuation allowance against deferred tax assets (“VA Release”), CAVA Group Adjusted Net Income¹ was $6.5 million compared to $2.0 million in the prior year quarter.
• CAVA Group Adjusted EBITDA¹ of $25.1 million compared to $15.7 million in the prior year quarter.
• Net cash provided by operating activities of $29.9 million with Free Cash Flow¹ of $2.1 million.

Fiscal Year 2024 Highlights:

• CAVA Revenue grew 33.1% to $954.3 million as compared to $717.1 million in the prior year. Excluding $10.9 million of revenue in the 53rd week of fiscal 2023, CAVA Revenue grew 35.1%.
• Net New CAVA Restaurant Openings of 58
• CAVA Same Restaurant Sales Growth of 13.4%
• CAVA AUV of $2.9 million as compared to $2.6 million excluding the 53rd week of fiscal 2023 in the prior year.
• CAVA Restaurant-Level Profit of $238.1 million or growth of 34.2% over the prior year, with CAVA Restaurant-Level Profit Margin of 25.0%, a 20 basis point increase over the prior year.
• CAVA Digital Revenue Mix was 36.4%.
• CAVA Group Net Income of $130.3 million compared to net income of $13.3 million in the prior year. Excluding the VA Release, CAVA Group Adjusted Net Income¹ was $50.2 million compared to $13.3 million in the prior year.
• CAVA Group Adjusted EBITDA¹ of $126.2 million compared to $73.8 million in the prior year.
• Net cash provided by operating activities of $161.0 million with Free Cash Flow¹ of $52.9 million

CAVA Fiscal Fourth Quarter 2024 Review:

CAVA Revenue was $225.1 million, an increase of 28.3% compared to the fiscal fourth quarter of 2023. The increase was driven by 77 Net New CAVA Restaurant Openings during or subsequent to the fiscal fourth quarter of 2023, and CAVA Same Restaurant Sales Growth of 21.2%, partially offset by the impact of the 53rd week in fiscal 2023. CAVA Same Restaurant Sales Growth consists of 15.6% from guest traffic and 5.6% from menu price and product mix. To achieve an optimal comparison of fiscal weeks in the CAVA Same Restaurant Sales calculation giving consideration to holiday periods, each week of fiscal 2023 was shifted by one week. As a result of this shift, approximately $4.0 million of additional revenue is included in CAVA Same Restaurant Sales Growth. Had this shift not been made, CAVA Same Restaurant Sales Growth would have been 18.3%.

CAVA Restaurant-Level Profit Margin was 22.4%, an increase of 50 basis points excluding the benefit of the 53rd week in fiscal 2023. The increase was due to operating leverage from higher sales, partially offset by an increase in food, beverage, and packaging costs driven by our national rollout of steak in the summer of 2024 and incremental wage investments.

CAVA Group Fiscal Fourth Quarter 2024 Review:

General and administrative expenses were $28.5 million, or 12.6% of revenue, as compared to $24.7 million, or 13.9% of revenue, in the fiscal fourth quarter of 2023. General and administrative expenses, excluding equity-based compensation¹, were $23.6 million, or 10.4% of revenue, as compared to $21.3 million, or 12.0% of revenue, in the fiscal fourth quarter of 2023. The decrease of 160 basis points was primarily due to leverage from higher sales, partially offset by investments to support future growth.

Net income was $78.6 million, or 34.6% of revenue, as compared to $2.0 million in the fiscal fourth quarter of 2023. Excluding the VA Release, Adjusted Net Income¹ was $6.5 million compared to $2.0 million in the fiscal fourth quarter of 2023. The increase was due to higher operating performance as noted below, partially offset by higher depreciation and amortization, equity-based compensation, and income tax expense (excluding the impact of the VA Release).

Adjusted EBITDA¹ was $25.1 million, or 11.0% of revenue, an increase of $9.4 million, or 60.0%, compared to the fiscal fourth quarter of 2023. The increase was primarily driven by the number and strength of performance of Net New CAVA Restaurant Openings during or subsequent to the fourth quarter of fiscal 2023, 21.2% CAVA Same Restaurant Sales Growth, and leverage in general and administrative expenses.

CAVA Fiscal 2024 Review:

CAVA Revenue was $954.3 million, an increase of 33.1% compared to fiscal 2023. The increase was driven by 130 Net New CAVA Restaurant Openings during or subsequent to fiscal 2023 and CAVA Same Restaurant Sales Growth of 13.4%, partially offset by the impact of the 53rd week in fiscal 2023. CAVA Same Restaurant Sales Growth consists of 8.7% from guest traffic and 4.7% from menu price and product mix. Excluding the impact of the shift in weeks for comparability noted above, CAVA Same Restaurant Sales Growth for fiscal 2024 would have been 13.2%.

CAVA Restaurant-Level Profit Margin was 25.0%, an increase of 20 basis points compared to fiscal 2023. The increase was due to leverage from higher sales, partially offset by higher input costs associated with the launch of grilled steak, incremental wage investments, and the impact of the 53rd week in fiscal 2023.

CAVA Group Fiscal 2024 Review:

General and administrative expenses were $120.5 million, or 12.5% of revenue, as compared to $101.5 million, or 13.9% of revenue, in fiscal 2023. General and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs¹, were $103.4 million, or 10.7% of revenue, as compared to $90.8 million, or 12.5% of revenue, in fiscal 2023. The decrease of 180 basis points was primarily due to leverage from higher sales, partially offset by investments to support future growth.

Net income was $130.3 million, or 13.5% of revenue, as compared to $13.3 million in fiscal 2023. Excluding the VA Release, Adjusted Net Income¹ was $50.2 million compared to $13.3 million in fiscal 2023. The increase was due to higher operating performance as noted below, interest income, and restructuring costs in the prior year associated with Zoes Kitchen, partially offset by depreciation and amortization, equity-based compensation, and income tax expense (excluding the VA Release).

Adjusted EBITDA¹ was $126.2 million, or 13.1% of revenue, an increase of $52.4 million, or 71.0%, compared to fiscal 2023. The increase was primarily driven by the number and strength of performance of Net New CAVA Restaurant Openings during or subsequent to fiscal 2023, 13.4% CAVA Same Restaurant Sales Growth, and leverage in general and administrative expenses.

Fiscal 2023 included a 53rd week that is not included in fiscal 2024, which contributed $10.9 million of CAVA Revenue. We estimate that CAVA Restaurant-Level Profit Margin includes a benefit of approximately 50 basis points and 10 basis points in the fourth quarter of 2023 and full year 2023, respectively, due to the leverage associated with certain costs not impacted by the extra week. We estimate that the benefit to fiscal 2023 income from operations and Adjusted EBITDA of the 53rd week was approximately $2.5 million due to higher CAVA Revenue and CAVA Restaurant-Level Profit Margin, partially offset by higher general and administrative expense of approximately $1 million to support the growth of the business.

__________________
1	General and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs, Adjusted EBITDA, Adjusted Net Income, 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 2025 Outlook:

CAVA Group anticipates the following for fiscal 2025:

Net New CAVA Restaurant Openings		62 to 66
CAVA Same Restaurant Sales Growth		6.0% to 8.0%
CAVA Restaurant-Level Profit Margin		24.8% to 25.2%
Pre-opening costs		$14.0 to $15.0 million
Adjusted EBITDA		$150.0 to $157.0 million

Actual results may differ materially from CAVA Group's fiscal full-year 2025 guidance as a result of, among other things, the factors described under “Forward-Looking Statement” below.

A reconciliation of the forward-looking fiscal 2025 Adjusted EBITDA to net income 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 age groups, genders, and income brackets 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 25, 2025 at 5:00 PM Eastern Time to discuss fourth quarter and fiscal year 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, 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: we operate in a highly competitive industry; our future growth depends on our ability to open new restaurants while managing our growth effectively and maintaining our culture, and our historical growth may not be indicative of our future growth; we may not be able to successfully identify appropriate locations and develop and expand our operations in existing and new markets; new restaurants may not be profitable, and may negatively impact sales at our existing locations; negative changes in guest perception of our brand could negatively impact our business; our efforts to market our restaurants and brand may not be successful; food safety issues, and food-borne illness concerns may harm our business; if we are unable to maintain or increase prices, our margins may decrease; the growth of our business depends on our ability to accurately predict guest trends and demand and successfully introduce new menu offerings and improve our existing menu offerings; we are subject to risks associated with leasing property; we may not be able to successfully expand our digital and delivery business, which is subject to risks outside of our control; our inability or failure to utilize, recognize, respond to, and effectively manage the immediacy of social media could have a material adverse effect on our business; we may not realize the anticipated benefits from past and potential future acquisitions, investments, or other strategic initiatives; we may not be able to manage our manufacturing and supply chain effectively, which may adversely affect our results of operations; our reliance on third parties could have an adverse effect on our business, financial condition, and results of operations; we may experience shortages, delays, or interruptions in the delivery of food items and other products; we may not successfully optimize, operate, and manage our production facilities; we may face increases in food, commodity, energy, and other costs; we may face increases in labor costs, labor shortages, and difficulties in our ability to identify, hire, train, motivate and retain the right team members; our success depends on our ability to attract, develop, and retain our management team and key team members; security breaches of our electronic processing of credit and debit card transactions, the CAVA app, or confidential guest or team member information (including personal information) may adversely affect our business; our business is subject to complex and evolving laws and regulations regarding privacy, data protection, and cybersecurity; we rely heavily on information technology systems and failures of, or interruptions in, or not effectively scaling and adapting, our information technology systems could harm our business; we are subject to evolving rules and regulations with respect to environmental, social and governance matters; climate change and volatile adverse weather conditions could adversely affect our restaurant sales or results of operations; and each of the other factors set forth in “Part I—Item 1A. Risk Factors” in our Annual Report on Form 10-K, and in other reports filed with the United States Securities and Exchange Commission, all of which are available on the investor relations page of our website at investor.cava.com.

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 certain non-recurring public company costs, Adjusted Net Income, Adjusted Diluted Earnings Per Share, 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 certain non-recurring public company costs, Adjusted Net Income, Adjusted Diluted Earnings Per Share, 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 certain non-recurring public company costs, Adjusted Net Income, Adjusted Diluted Earnings Per Share, 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 certain non-recurring public company costs, Adjusted Net Income, Adjusted Diluted Earnings Per Share, and Free Cash Flow are not recognized terms under GAAP and should not be considered as alternatives to net income, net income 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 tax payments and financing cash flows, and Free Cash Flow does not consider certain cash requirements such as financing cash flows. 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 and Adjusted Net Income do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
• Adjusted EBITDA and Adjusted Net Income do not reflect changes in, or cash requirements for, our working capital needs;
• Adjusted EBITDA, Adjusted Net Income, 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 certain non-recurring public company costs, Adjusted Net Income, Adjusted Diluted Earnings Per Share, and Free Cash Flow differently than we do, limiting their usefulness as comparative measures.

CAVA GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
	Twelve Weeks Ended				Thirteen Weeks Ended				Fiscal Year Ended
(in thousands, except per share amounts)	December 29, 2024				December 31, 2023				December 29, 2024				December 31, 2023
Revenue	$	227,395			$	177,170			$	963,713			$	728,700
Operating expenses:
Restaurant operating costs (excluding depreciation and amortization)
Food, beverage, and packaging		68,417				51,522				284,743				213,458
Labor		61,356				48,842				247,490				187,326
Occupancy		17,100				14,538				69,851				58,319
Other operating expenses		29,090				22,404				119,824				89,251
Total restaurant operating expenses		175,963				137,306				721,908				548,354
General and administrative expenses		28,549				24,674				120,500				101,491
Depreciation and amortization		14,975				12,337				60,355				47,433
Restructuring and other costs		(2	)			920				580				6,080
Pre-opening costs		2,697				2,909				12,197				15,718
Impairment and asset disposal costs		1,260				604				5,055				4,899
Total operating expenses		223,442				178,750				920,595				723,975
Income (loss) from operations		3,953				(1,580	)			43,118				4,725
Interest income, net		(3,645	)			(4,222	)			(16,474	)			(8,852	)
Other income, net		(130	)			(59	)			(318	)			(471	)
Income before taxes		7,728				2,701				59,910				14,048
(Benefit from) provision for income taxes		(70,891	)			652				(70,409	)			768
Net income	$	78,619			$	2,049			$	130,319			$	13,280
Earnings per share
Basic	$	0.69			$	0.02			$	1.14			$	0.22
Diluted	$	0.66			$	0.02			$	1.10			$	0.21
Weighted-average common shares outstanding:
Basic		114,739				113,642				114,292				60,512
Diluted		118,546				117,250				118,273				63,448

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 for the fiscal quarters and fiscal years ended December 29, 2024 and December 31, 2023:

	Twelve Weeks Ended						Thirteen Weeks Ended
	December 29, 2024						December 31, 2023						Change
($ in thousands)	$			% of Revenue			$			% of Revenue			$			%
Restaurant revenue	$	225,100		100.0	%		$	175,451		100.0	%		$	49,649		28.3	%
Restaurant operating expenses (excluding depreciation and amortization)
Food, beverage, and packaging		67,327		29.9				50,517		28.8				16,810		33.3
Labor		61,356		27.3				48,842		27.8				12,514		25.6
Occupancy		17,100		7.6				14,538		8.3				2,562		17.6
Other operating expenses		28,904		12.8				22,245		12.7				6,659		29.9
Total restaurant operating expenses		174,687		77.6				136,142		77.6				38,545		28.3
Restaurant-level profit	$	50,413		22.4	%		$	39,309		22.4	%		$	11,104		28.2	%

	Fiscal Year Ended
	December 29, 2024						December 31, 2023						Change
($ in thousands)	$			% of Revenue			$			% of Revenue			$			%
Restaurant revenue	$	954,273		100.0	%		$	717,060		100.0	%		$	237,213		33.1	%
Restaurant operating expenses (excluding depreciation and amortization)
Food, beverage, and packaging		279,741		29.3				208,237		29.0				71,504		34.3
Labor		247,490		25.9				185,820		25.9				61,670		33.2
Occupancy		69,851		7.3				57,811		8.1				12,040		20.8
Other operating expenses		119,078		12.5				87,704		12.2				31,374		35.8
Total restaurant operating expenses		716,160		75.0				539,572		75.2				176,588		32.7
Restaurant-level profit	$	238,113		25.0	%		$	177,488		24.8	%		$	60,625		34.2	%

The following table presents selected quarterly financial and other data for the periods indicated:

	Twelve Weeks Ended				Twelve Weeks Ended				Twelve Weeks Ended				Sixteen Weeks Ended				Thirteen Weeks Ended
	December 29, 2024				October 6, 2024				July 14, 2024				April 21, 2024				December 31, 2023
($ in thousands)	(Q4 2024)				(Q3 2024)				(Q2 2024)				(Q1 2024)				(Q4 2023)
Net New CAVA Restaurant Openings		15				11				18				14				19
CAVA Restaurants, end of period		367				352				341				323				309
CAVA Same Restaurant Sales Growth1		21.2	%			18.1	%			14.4	%			2.3	%			11.4	%
CAVA AUV2	$	2,865			$	2,784			$	2,689			$	2,608			$	2,639
CAVA Restaurant-Level Profit	$	50,413			$	61,819			$	61,265			$	64,616			$	39,309
CAVA Restaurant-Level Profit Margin		22.4	%			25.6	%			26.5	%			25.2	%			22.4	%
CAVA Restaurant Operating Weeks		4,299				4,159				3,963				5,086				3,929

__________________
1	CAVA Same Restaurant Sales Growth for Q4 2023 is presented excluding the impact of the 53rd week of fiscal year 2023. To achieve an optimal comparison of fiscal weeks in the CAVA Same Restaurant Sales 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 Q1 2024 and an additional $4.0 million of revenue is included in the CAVA Same Restaurant Sales Growth for Q4 2024. Had this shift not been made, CAVA Same Restaurant Sales Growth would have been 4.3% in Q1 2024 and 18.3% in Q4 2024. CAVA Same Restaurant Sales Growth would have been immaterially impacted in Q2 2024, Q3 2024, and for the full year fiscal 2024.
2	For purposes of calculating CAVA AUV for Q4 2024, the applicable measurement period is the trailing thirteen periods ended December 29, 2024. For purposes of calculating CAVA AUV for Q4 2023, Q1 2024, Q2 2024, and Q3 2024 the applicable measurement period is the trailing thirteen periods ended December 31, 2023, April 21, 2024, July 14, 2024 and October 6, 2024, respectively, excluding the 53rd week of fiscal year 2023.

The following table presents the Company’s selected balance sheet data:

($ in thousands)	December 29, 2024			December 31, 2023
Cash and cash equivalents	$	366,120		$	332,428
Total assets		1,169,669			983,757
Total liabilities		474,103			412,955
Total stockholders’ equity		695,566			570,802
Total liabilities and stockholders' equity		1,169,669			983,757

The following table shows the growth in our company-owned CAVA restaurant base:

	Twelve Weeks Ended		Thirteen Weeks Ended		Fiscal Year Ended
	December 29, 2024		December 31, 2023		December 29, 2024			December 31, 2023
Beginning of period	352		290		309			237
New CAVA Restaurant openings1	15		19		59			73
Permanent closure	—		—		(1	)		(1	)
End of period	367		309		367			309

__________________
1	New CAVA restaurant openings during fiscal 2023 includes converted Zoes Kitchen locations.

Non-GAAP Financial Measures

The following table reconciles net income to Adjusted EBITDA for the periods indicated:

	Twelve Weeks Ended				Thirteen Weeks Ended				Fiscal Year Ended
($ in thousands)	December 29, 2024				December 31, 2023				December 29, 2024				December 31, 2023
Net income	$	78,619			$	2,049			$	130,319			$	13,280
Non-GAAP Adjustments
Interest income, net		(3,645	)			(4,222	)			(16,474	)			(8,852	)
(Benefit from) provision for income taxes		(70,891	)			652				(70,409	)			768
Depreciation and amortization		14,975				12,337				60,355				47,433
Equity-based compensation		4,918				3,409				17,140				9,575
Other income, net		(130	)			(59	)			(318	)			(471	)
Impairment and asset disposal costs		1,260				604				5,055				4,899
Restructuring and other costs		(2	)			920				580				6,080
Certain non-recurring public company costs		—				—				—				1,113
Adjusted EBITDA	$	25,104			$	15,690			$	126,248			$	73,825
Revenue	$	227,395			$	177,170			$	963,713			$	728,700
Net income margin1		34.6	%			1.2	%			13.5	%			1.8	%
Adjusted EBITDA margin		11.0	%			8.9	%			13.1	%			10.1	%

__________________
1	Net income margin for the twelve weeks and fiscal year ended December 29, 2024 includes the impact of the $80.1 million benefit from the VA Release.

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:

	Twelve Weeks Ended				Thirteen Weeks Ended				Fiscal Year Ended
($ in thousands)	December 29, 2024				December 31, 2023				December 29, 2024				December 31, 2023
General and administrative expenses	$	28,549			$	24,674			$	120,500			$	101,491
Equity-based compensation		4,918				3,409				17,140				9,575
Certain non-recurring public company costs		—				—				—				1,113
General and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs	$	23,631			$	21,265			$	103,360			$	90,803
Revenue	$	227,395			$	177,170			$	963,713			$	728,700
General and administrative expenses, as a percentage of revenue		12.6	%			13.9	%			12.5	%			13.9	%
General and administrative expenses, excluding equity-based compensation and certain non-recurring public company costs, as a percentage of revenue		10.4	%			12.0	%			10.7	%			12.5	%

The following table reconciles net income to Adjusted Net Income and diluted earnings per share to Adjusted Diluted Earnings Per Share for the periods presented:

	Twelve Weeks Ended				Thirteen Weeks Ended			Fiscal Year Ended
(in thousands)	December 29, 2024				December 31, 2023			December 29, 2024				December 31, 2023
Net income	$	78,619			$	2,049		$	130,319			$	13,280
Tax benefit from VA Release		(80,100	)			—			(80,100	)			—
Quarterly allocation of income tax expense, excluding VA Release 1		7,959				—			—				—
Adjusted Net Income	$	6,478			$	2,049		$	50,219			$	13,280
Diluted weighted average common shares outstanding		118,546				117,250			118,273				63,448
Diluted earnings per share	$	0.66			$	0.02		$	1.10			$	0.21
Diluted weighted average common shares outstanding, adjusted 2		118,546				117,250			118,273				116,492
Adjusted Diluted Earnings Per Share	$	0.05			$	0.02		$	0.42			$	0.11

__________________
1	Reflects an allocation of income tax expense excluding the VA Release recorded in Q4 2024 to each quarter within fiscal 2024 assuming a consistent effective tax rate.
2	In connection with our initial public offering on June 20, 2023, 95.2 million outstanding shares of preferred stock were converted into an equivalent number of shares of common stock and 16.6 million shares of common stock were issued. Diluted shares outstanding, adjusted assumes the impact on shares outstanding occurred on the first day of fiscal 2023.

The following table reconciles net income to Adjusted Net Income for each fiscal quarter of fiscal 2024:

	Sixteen Weeks Ended				Twelve Weeks Ended				Twelve Weeks Ended				Twelve Weeks Ended
	April 21, 2024				July 14, 2024				October 6, 2024				December 29, 2024				Fiscal
(in thousands)	(Q1 2024)				(Q2 2024)				(Q3 2024)				(Q4 2024)				2024
Net income	$	13,993			$	19,741			$	17,966			$	78,619			$	130,319
Tax benefit from VA Release		—				—				—				(80,100	)			(80,100	)
Quarterly allocation of income tax expense, excluding VA Release 1		(2,052	)			(2,953	)			(2,954	)			7,959				—
Adjusted Net Income	$	11,941			$	16,788			$	15,012			$	6,478			$	50,219

__________________
1	Reflects an allocation of income tax expense excluding the VA Release recorded in Q4 2024 to each quarter within fiscal 2024 assuming a consistent effective tax rate.

The following table reconciles net cash provided by operating activities to Free Cash Flow:

	Twelve Weeks Ended				Thirteen Weeks Ended				Fiscal Year Ended
($ in thousands)	December 29, 2024				December 31, 2023				December 29, 2024				December 31, 2023
Net cash provided by operating activities	$	29,853			$	24,013			$	161,027			$	97,101
Purchases of property and equipment		(27,742	)			(31,242	)			(108,131	)			(138,806	)
Free Cash Flow	$	2,111			$	(7,229	)		$	52,896			$	(41,705	)

Glossary:

The following definitions apply to these terms as used in this press release:

“Adjusted Diluted Earnings Per Share” is defined as Adjusted Net Income divided by diluted weighted-average common shares outstanding, adjusted in fiscal 2023 to assume the impact of the initial public offering occurred on the first day of fiscal 2023;

“Adjusted EBITDA” is defined as net income adjusted to exclude interest income, net, (benefit from) 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. See “Non-GAAP Financial Measures” for a reconciliation of net income to Adjusted EBITDA for the twelve weeks ended December 29, 2024 and fiscal 2024;

“Adjusted EBITDA Margin” is defined as Adjusted EBITDA as a percentage of revenue;

“Adjusted Net Income” is defined as net income adjusted to exclude the net benefit associated with the release of a valuation allowance previously recorded against deferred tax assets;

“Adjusted Net Income Margin” is defined as Adjusted Net Income 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 or temporarily closed 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);

“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;

“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/20250224142303/en/

Investor Relations:

Anisha Sutaria, Director, Corporate Development & IR

investor.relations@cava.com

Media Relations:

media@cava.com

Source: CAVA Group, Inc.

FAQ

What was CAVA's revenue growth in fiscal year 2024?

CAVA's revenue grew 35.1% in fiscal year 2024 (excluding 53rd week of 2023), reaching $954.3 million.

How many new restaurants did CAVA open in 2024?

CAVA opened 58 net new restaurants in 2024, bringing the total to 367 locations.

What was CAVA's same-store sales growth in Q4 2024?

CAVA achieved 21.2% same-store sales growth in Q4 2024, with 15.6% from guest traffic.

What is CAVA's restaurant-level profit margin for 2024?

CAVA's restaurant-level profit margin was 25.0% for fiscal year 2024.

What percentage of CAVA's revenue came from digital orders in 2024?

Digital revenue represented 36.4% of CAVA's total revenue in fiscal year 2024.