CAVA Group Reports 28.1% Revenue Growth to $331.8 Million in Latest Filing

CAVA Group, Inc. reported significant financial growth in its latest 10-Q filing for the sixteen weeks ended April 20, 2025, with total revenue reaching $331.8 million, a 28.1% increase from $259.0 million in the same period last year. The company's net income also saw a substantial rise, climbing to $25.7 million compared to $14.0 million in the prior year, marking an 83.7% increase. This growth was primarily driven by a 28.2% increase in restaurant revenue, which amounted to $328.5 million, attributed to both new restaurant openings and a 10.8% same-restaurant sales growth.

CAVA's operational metrics reflected a strong performance, with the company operating 382 fast-casual restaurants across 26 states and Washington, D.C., an increase of 59 locations from the previous year. The company opened 15 new restaurants during the quarter, contributing to a 10.8% increase in same-restaurant sales, which included a 7.5% rise in guest traffic and a 3.3% increase in menu prices and product mix. The average unit volume (AUV) for CAVA restaurants also improved, reaching $2,933, up from $2,608 in the prior year.

The company’s operating expenses increased in line with its growth, with total operating expenses rising to $316.1 million from $249.8 million. Notably, restaurant operating expenses, which exclude depreciation and amortization, accounted for 74.7% of total revenue. CAVA's labor costs increased due to new restaurant openings and a 3% rise in average hourly wages, while occupancy costs also rose due to the expansion. Despite these increases, the restaurant-level profit margin remained stable at 25.1%, slightly down from 25.2% in the previous year.

CAVA has also made strategic investments, launching an investment portfolio consisting of fixed-income debt securities, valued at approximately $79.9 million as of April 20, 2025. The company’s cash and cash equivalents decreased to $289.4 million from $366.1 million at the end of the previous fiscal year, primarily due to increased capital expenditures related to new restaurant openings. The company reported net cash provided by operating activities of $38.6 million, reflecting improved operational performance.

Looking ahead, CAVA Group, Inc. remains optimistic about its growth trajectory, supported by its expansion strategy and strong customer engagement metrics. The company anticipates that its ongoing investments in new locations and operational efficiencies will continue to drive revenue growth and profitability in the coming quarters.