Company: CAVA
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001639438-25-000007
Chunk: 20

Company: CAVA GROUP, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 20
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 renewal options.Supplemental disclosures of cash flow information related to leases were as follows:Twelve Weeks EndedTwenty-Eight Weeks Ended(in thousands)July 13,2025July 14,2024July 13,2025July 14,2024Cash paid for operating lease liabilities$16,828 $14,134 $32,738 $28,410 Operating lease assets obtained in exchange for operating lease liabilities28,974 13,866 67,120 33,397 Derecognition of operating lease assets due to termination or impairment— — 302 109 

9.    COMMITMENTS AND CONTINGENCIES

Purchase Obligations—The Company enters into various purchase obligations in the ordinary course of business, generally of a short-term nature. Those that are binding primarily relate to amounts owed for produce and other ingredients and supplies, including supplies and materials used for new restaurant openings.Letters of Credit—As of July 13, 2025 and December 29, 2024, the Company had six and four irrevocable letters of credit in favor of various landlords in the aggregate amount of $0.9 million and $0.7 million, respectively. The letters of credit do not require a compensating balance and automatically renew in accordance with the terms of the underlying lease agreement.Litigation—The Company is currently involved in various claims and legal actions that arise in the ordinary course of its business, including claims resulting from employment related matters. While the ultimate outcome and the costs associated with litigation are inherently uncertain and difficult to predict, as of the date hereof, the Company does not believe that any of its pending legal proceedings, most of which are covered by insurance, will have a material effect on the Company’s business, financial condition, results of operations, or cash flows. However, a significant increase in the number of these claims or an increase in uninsured amounts owed under successful claims could materially and adversely affect the Company’s business, financial condition, results of operations, or cash flows.Investments—Refer to Note 3 (Investments) for information regarding the Company’s commitment related to an investment in a convertible promissory note.

10.    EQUITY-BASED COMPENSATION

The Company recognized equity-based compensation expense (including applicable payroll taxes) of $4.6 million and $11.2 million during the twelve and twenty-eight weeks ended July 13, 2025, and $3.6 million and