Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 120

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 120
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 by the U.S. government can significantly impact our business. The recent changes by the U.S. government, including through executive orders, may result in substantial modifications to laws and regulations, including, but not limited to, those related to trade policies, tariffs, export controls, and technology transfers. New executive orders and legislative actions could alter the business environment in which we operate.

The current administration may implement new policies or reverse existing ones, affecting international trade relations and, as a result, impacting our supply chain. The imposition of new tariffs or trade barriers could increase the cost of certain items in our restaurants such as utensils, lids and bowls, and food products such as avocados. Furthermore, new regulations or changes to existing regulations could require us to modify our operations and incur additional expenses to comply with the new legal standards. These changes could disrupt our business operations and negatively impact our profitability.

In addition, any significant changes enacted by the current U.S. Government administration to the Internal Revenue Code of 1986, as amended (the “Code”) or specifically to the Tax Cuts and Jobs Act (“TCJA”) enacted in 2017, or to regulatory guidance associated with the TCJA, could materially adversely affect our effective tax rate.

Any such changes could have a material adverse effect on our business, financial condition, and results of operations. We are actively monitoring policy developments and are prepared to adapt our strategies accordingly; however, there can be no assurance that we will be successful in mitigating the risks posed by changes in government policies and regulations.

We are subject to extensive laws and regulatory requirements, and failure to comply with, or changes in, these laws or regulations could have an adverse impact on our business.

Our restaurants are subject to U.S. federal, state, and local licensing and regulation by health, sanitation, food, occupational safety, and other agencies, which are subject to change from time to time. Our license requirements include those relating to the preparation and sale of food and beverages as well as food safety requirements. In addition, the development and operation of our restaurants depends to a significant extent on the selection and acquisition of suitable locations, which are subject to zoning, land use, environmental, and other regulations and requirements. Difficulties or failure to maintain or obtain the required licenses, permits, and approvals could adversely affect our existing restaurants and delay or result in our decision to cancel the opening of new restaurants, which would adversely affect our business, financial condition, and results of operations.

Various U.S. federal, state, and local