Company: CAVA
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001628280-25-026077
Chunk: 48

Company: CAVA GROUP, INC.
Filing Date: 2025-05-16
Form: 10-Q
Item: Item 2
Chunk 48
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(in thousands)April 20,2025April 21,2024Net income$25,707$13,993Non-GAAP AdjustmentsInterest income, net(4,617)(4,914)(Benefit from) provision for income taxes(5,353)252Depreciation and amortization20,81117,322Equity-based compensation6,6625,170Other income, net(27)(78)Impairment and asset disposal costs1,6671,290Restructuring and other costs—282Adjusted EBITDA$44,850$33,317Revenue$331,826$259,006Net income margin 7.7 %5.4 %Adjusted EBITDA margin13.5 %12.9 %

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