Company: CAVA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049080
Chunk: 32

Company: CAVA GROUP, INC.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 32
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6, 2024. The remainder of the increase was primarily due to CAVA Same Restaurant Sales Growth of 5.1%. As a percentage of CAVA Revenue, CAVA food, beverage, and packaging increased primarily due to input costs associated with the launch of grilled steak in the second quarter of fiscal 2024, the impact of tariffs, and our chicken shawarma offering in the current quarter.

CAVA labor:

The increase in CAVA labor was primarily due to the 106 Net New CAVA Restaurant Openings during or subsequent to the forty weeks ended October 6, 2024 and higher average hourly wages of approximately 2%. As a percentage of CAVA Revenue, CAVA labor decreased due to the impact of higher sales, partially offset by the aforementioned incremental wage investments.

CAVA occupancy:

The increase in CAVA occupancy was primarily due to the 106 Net New CAVA Restaurant Openings during or subsequent to the forty weeks ended October 6, 2024. As a percentage of CAVA Revenue, CAVA occupancy decreased primarily due to operating leverage associated with higher sales.  

CAVA other operating expenses:

The increase in CAVA other operating expenses was primarily due to the 106 Net New CAVA Restaurant Openings during or subsequent to the forty weeks ended October 6, 2024 and CAVA Same Restaurant Sales Growth of 5.1%. As a percentage of CAVA Revenue, CAVA other operating expenses increased due to a higher mix of third-party delivery, insurance costs, and other individually insignificant items, partially offset by operating leverage associated with higher sales.

20

Other Results

The following table summarizes remaining activity related to CPG operations and the production of dips, spreads, and certain dressing bases used in CAVA restaurants:

Forty Weeks EndedOctober 5,2025October 6,2024Change(in thousands)$% of Revenue$% of Revenue$%Revenue$8,161 100.0 %$7,145 100.0 %$1,016 14.2 %Food, beverage, and packaging3,119 38.2 3,912 54.8 (793)(20.3)Other operating expenses664 8.1 560 7.8 104 18.6 

The increase in revenue noted above was primarily due to higher CPG sales. As a percentage of revenue, food, beverage, and packaging decreased due to operational efficiencies realized since the commencement of operations at our facility in Verona