Fri, May 16, 10:02 AM (28 days ago)
**CAVA Group, Inc. (CAVA) Q1 2025 Financial Summary** **Company Overview:** CAVA Group, Inc. operates 382 fast-casual Mediterranean restaurants across 26 states and Washington, D.C. The company focuses on authentic Mediterranean cuisine with a menu featuring customizable bowls and pitas. **Financial Performance (Q1 2025 vs. Q1 2024):** - **Revenue:** $331.8 million (up 28.1% from $259.0 million). - **Net Income:** $25.7 million (up 83.7% from $13.99 million). - **Earnings per Share (EPS):** $0.22 (up from $0.12). - **Adjusted EBITDA:** $44.9 million (up 34.3% from $33.3 million). - **Adjusted Net Income:** $25.7 million (up 16.7% from $22.1 million). **Key Performance Metrics:** - **CAVA Same Restaurant Sales Growth:** 10.8% (up from 2.3%). - **CAVA Average Unit Volume (AUV):** $2,933 (up from $2,608). - **CAVA Restaurant-Level Profit Margin:** 25.1% (down slightly from 25.2%). - **CAVA Digital Revenue Mix:** 38.0% (up from 37.0%). **Operational Highlights:** - **New Restaurant Openings:** 15 new restaurants opened, with 59 net new openings since Q1 2024. - **Restaurant Count:** 382 restaurants as of April 20, 2025. - **Investments:** Launched an investment portfolio consisting of fixed income debt securities to optimize returns on cash balances. **Cash Flow and Liquidity:** - **Cash and Cash Equivalents:** $289.4 million (down from $366.1 million). - **Net Cash Provided by Operating Activities:** $38.6 million (up slightly from $38.4 million). - **Net Cash Used in Investing Activities:** $115.8 million (up significantly from $33.7 million due to new investments and capital expenditures). **Future Outlook and Uncertainties:** - **Growth Strategy:** Focus on expanding the restaurant base, improving digital and delivery services, and enhancing menu offerings. - **Risks:** Competitive industry, economic factors, labor costs, supply chain disruptions, and regulatory changes. - **Liquidity:** Sufficient cash on hand and available under the 2022 Credit Facility to meet short- and long-term obligations. **Conclusion:** CAVA Group, Inc. demonstrated strong financial performance in Q1 2025, driven by significant revenue growth, increased net income, and strategic investments. The company continues to expand its restaurant footprint and enhance its digital capabilities, positioning itself for future growth despite various operational and market risks.