Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 151

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 151
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 set forth below. We present our segment results before our consolidated results as we believe that our CAVA segment is more useful and meaningful in assessing the performance of our business, which is mainly driven by our CAVA segment. As of March 2, 2023, we no longer operate any Zoes Kitchen locations, and on October 20, 2023 our conversion strategy was completed with the last conversion restaurant opening. As a result, we have limited our discussion of the Zoes Kitchen segment. In addition, because our consolidated results of operations include the results of our Zoes Kitchen segment, we believe that our consolidated results of operations are less indicative of our performance as compared to our CAVA segment.

Comparison of Fiscal 2024 and 2023

CAVA Segment Results

The following table summarizes the results of the CAVA segment for the fiscal years indicated:

20242023Change($ in thousands)$% of Revenue$% of Revenue$%Restaurant revenue$954,273 100.0 %$717,060 100.0 %$237,213 33.1 %Restaurant operating expenses (excluding depreciation and amortization):Food, beverage, and packaging279,741 29.3 208,237 29.0 71,504 34.3 Labor247,490 25.9 185,820 25.9 61,670 33.2 Occupancy69,851 7.3 57,811 8.1 12,040 20.8 Other operating expenses119,078 12.5 87,704 12.2 31,374 35.8 Total restaurant operating expenses716,160 75.0 539,572 75.2 176,588 32.7 Restaurant-level profit$238,113 25.0 %$177,488 24.8 %$60,625 34.2 %

CAVA Revenue

The increase in CAVA Revenue was primarily due to a $156.6 million increase from the 130 Net New CAVA Restaurant Openings during or subsequent to fiscal 2023, of which a portion was attributable to the 28 CAVA restaurants that were converted from Zoes Kitchen locations. The remainder of the increase in CAVA Revenue was driven by CAVA Same Restaurant Sales Growth of 13.4%, which consists of 8.7% from guest traffic increases and 4.7% from menu price increases