Company: CAVA
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001628280-25-026077
Chunk: 26

Company: CAVA GROUP, INC.
Filing Date: 2025-05-16
Form: 10-Q
Item: Item 1
Chunk 26
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,667 0.5 1,290 0.5 377 29.2 Total operating expenses316,116 95.3 249,753 96.4 66,363 26.6 Income from operations15,710 4.7 9,253 3.6 6,457 69.8 Interest income, net(4,617)(1.4)(4,914)(1.9)297 (6.0)Other income, net(27)— (78)— 51 (65.4)Income before taxes20,354 6.1 14,245 5.5 6,109 42.9 (Benefit from) provision for income taxes(5,353)(1.6)252 0.1 (5,605)N/MNet income$25,707 7.7 %$13,993 5.4 %$11,714 83.7 %

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N/M data not meaningful

Revenue, Food, beverage, and packaging, Labor, Occupancy, and Other operating expenses:

The increases in Revenue, Food, beverage, and packaging, Labor, Occupancy, and Other operating expenses are primarily driven by the growth of our CAVA Segment. Refer to “CAVA Segment Results” above for more information.

General and administrative expenses:

The increase in general and administrative expenses was primarily due to investments to support future growth and higher equity-based compensation, including payroll taxes arising from the vesting of RSUs. 

Depreciation and amortization:

The increase in depreciation and amortization was primarily driven by the addition of assets from the 73 Net New CAVA Restaurant Openings during or subsequent to the sixteen weeks ended April 21, 2024 and technology improvements. 

Pre-opening costs:

The increase in pre-opening costs was due to the timing of new CAVA restaurant openings, and includes the impact of higher rent geographies in the current quarter.

18

Impairment and asset disposal costs:

The increase in impairment and asset disposal costs was primarily due to impairment charges related to certain operating lease assets and property and equipment, net.

Interest income, net:

The decrease in interest income, net, was due to lower interest rates on short term investments in the current quarter.

(Benefit from) provision for income taxes:

The effective income tax rate for the sixteen weeks ended April 20, 2025 was a benefit of 26.3