Company: CAVA
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001628280-25-026077
Chunk: 29

Company: CAVA GROUP, INC.
Filing Date: 2025-05-16
Form: 10-Q
Item: Item 1
Chunk 29
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.9 %

The following table provides a reconciliation of net income to Adjusted Net Income and net income margin to Adjusted Net Income margin for the periods indicated:

Sixteen Weeks Ended(in thousands)April 20,2025April 21,2024Net income$25,707 $13,993 Quarterly allocation of income tax expense, excluding VA Release1— (2,052)Adjusted Net Income$25,707 $11,941 Revenue$331,826 $259,006 Net income margin7.7 %5.4 %Adjusted Net Income margin7.7 %4.6 %

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1    Reflects an allocation of income tax expense excluding the net benefit from the release of the valuation allowance previously recorded against our deferred tax assets, or the VA Release, recorded in Q4 2024 assuming a consistent effective tax rate.

Liquidity and Capital Resources

We assess our liquidity in terms of our ability to generate adequate amounts of cash to meet our current and expected future operating needs. Our expected primary uses of cash on a short- and long-term basis are for the expansion of our restaurant base, working capital, and other capital expenditures. 

We believe that cash provided by operating activities and existing cash on hand, together with amounts available under our 2022 Credit Facility, will be sufficient to satisfy our anticipated cash requirements for the next twelve months and foreseeable future, including our expected capital expenditures for expansion of our CAVA restaurant base, operating lease obligations, and working capital requirements. Our sources of liquidity could be affected by general macroeconomic conditions, as well as tariff policy and geopolitical tensions between the United States and foreign countries, as well as the factors described under the section entitled “Risk Factors” in our 2024 Annual Report. Depending on the severity and direct impact of these factors on us, we may not be able to secure additional financing on acceptable terms, or at all.

20

Cash Overview

We had cash and cash equivalents of $289.4 million and $366.1 million as of April 20, 2025 and December 29, 2024, respectively.  In addition, we had investments of $79.9 million as of April 20, 2025.  For the sixteen weeks ended April 20, 2025, our operations were funded from cash flows from operations. 

Cash Flows

The following table summarizes our cash flows:

Sixteen Weeks EndedChange(in thousands)April 20,