Company: CAVA
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001628280-25-026077
Chunk: 12

Company: CAVA GROUP, INC.
Filing Date: 2025-05-16
Form: 10-Q
Item: Item 1
Chunk 12
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, of certain income statement expenses into different categories, such as purchases of inventory, employee compensation, and depreciation. The FASB issued an update in January 2025, ASU 2025-01, which clarifies the effective date of ASU 2024-03. The amendment is effective for fiscal years beginning after December 15, 2026 (the Company’s fiscal 2027), with early adoption permitted, and may be applied on a retrospective basis. The Company is currently evaluating the impact of adopting this ASU on its financial statements and disclosures.

The Company reviewed all other recently issued accounting standards and determined they were either not applicable or not expected to have a material impact on the Company’s financial position or results from operations. 

2.    REVENUE

The Company’s revenue was as follows:Sixteen Weeks Ended(in thousands)April 20,2025April 21,2024Restaurant revenue$328,482 $256,290 CPG revenue and other3,344 2,716 Revenue$331,826 $259,006 Revenue from the redemption of the Company’s gift cards and loyalty program is included in restaurant revenue. Refer to Note 5 (Supplemental Balance Sheet Information) for the Company’s gift card and loyalty liability balances. Revenue 

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recognized from the redemption of gift cards, included in the gift card liability at the beginning of the year was $1.4 million and $0.9 million during the sixteen weeks ended April 20, 2025 and April 21, 2024, respectively.Changes in the CAVA Rewards liability, which is included in accrued expenses and other on the accompanying consolidated balance sheets, were as follows for the periods indicated:Sixteen Weeks Ended(in thousands)April 20,2025April 21,2024CAVA Rewards liability, beginning balance$3,778 $1,787 Revenue deferred3,354 3,052 Revenue recognized(3,029)(2,954)CAVA Rewards liability, ending balance$4,103 $1,885 

3.     INVESTMENTS

The Company launched an investment portfolio consisting of fixed income debt securities in the current quarter, which was funded with cash and cash equivalents on hand. These investments, which may be sold prior to their contractual maturity, are designated as available-for-sale (“AFS”) and are carried at fair value. The difference between amortized cost, net of credit loss allowances (“am