Company: CAVA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049080
Chunk: 15

Company: CAVA GROUP, INC.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 15
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7,195)CAVA Rewards liability, ending balance$3,671 $2,611 $3,671 $2,611 

3.     INVESTMENTS

Fixed income debt securitiesThe Company launched an investment portfolio consisting of fixed income debt securities in the current year, 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 and are carried at fair value. The difference between amortized cost, net of any credit loss allowances, and fair value is reflected as a component of accumulated other comprehensive income, net of tax. Fixed income debt securities are presented within investments at fair value on the accompanying unaudited condensed consolidated balance sheet. Note ReceivableDuring the forty weeks ended October 5, 2025, the Company made a $5.0 million investment in a convertible promissory note of Hyphen Technologies, Inc. (the “Note Receivable”), which develops and provides automated makelines designed to improve the speed and efficiency of food production. The Company intends to test this technology in its digital business. The Company is committed to make an additional investment of $5.0 million upon the achievement of a predefined milestone event. This contingent investment will be made in the form of a convertible promissory note at terms that are substantially similar to the Note Receivable. The Note Receivable is presented within other long-term assets on the accompanying unaudited condensed consolidated balance sheet. Refer to Note 4 (Fair Value) for more information. 

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The Company’s investments were as follows:October 5, 2025(in thousands)Gross unrealizedSecurity Type CategoryAmortized CostGainsLossesEstimated Fair ValueAsset backed$10,349 $14 $— $10,363 Commercial deposits3,132 2 — 3,134 Corporate bonds67,029 121 — 67,150 U.S. government bonds22,435 33 — 22,468 Fixed income debt securities102,945 170 — 103,115 Note Receivable5,000 429 — 5,429 Total$107,945 $599 $— $108,544 In determining credit losses on its investments in an unrealized loss position, the Company considers certain factors that may include, among others, severity of the unrealized loss, security type, industry sector, credit rating, yield to maturity