Company: CAVA
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001639438-25-000007
Chunk: 55

Company: CAVA GROUP, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 2
Chunk 55
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,332 1.9 287 0.1 5,045 N/MNet income$18,368 6.5 %$19,741 8.5 %$(1,373)(7.0)%

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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, including our CAVA Connect conference, and higher equity-based compensation, partially offset by lower performance-based incentive compensation and legal costs. 

Depreciation and amortization:

The increase in depreciation and amortization was primarily driven by the addition of assets from the 75 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 14, 2024 and technology improvements. 

Pre-opening costs:

The increase in pre-opening costs was due to the volume of new CAVA restaurants under construction and the timing of openings.

Interest income, net:

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

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Other income, net:

The increase in other income, net was due to the fair value change recognized on a convertible promissory note described in Item 1, Financial Statements, Note 3 (Investments).

Provision for income taxes:

The effective tax rate for the twelve weeks ended July 13, 2025 was 22.5%, which includes the impact of a $1.7 million reduction to income tax expense associated with equity-based compensation. The effective tax rate for the twelve weeks ended July 14, 2024 was 1.4% as the amount of income tax expense was immaterial prior to the Company’s release of its valuation allowance against deferred tax assets in the fourth quarter of fiscal 2024.

Comparison of the twenty-eight weeks ended July 13, 2025 and July 14, 2024

CAVA Segment Results

The following table summarizes the results of the CAVA segment:

Twenty-Eight Weeks EndedJuly 13,2025July 14,2024Change(in thousands)$% of Revenue$% of Revenue$%Revenue$606,731 100.0