Company: CAVA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049080
Chunk: 55

Company: CAVA GROUP, INC.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 55
---
2,757 15.4 Provision for (benefit from) income taxes5,919 2.0 (57)— 5,976 N/MNet income$14,747 5.0 %$17,966 7.4 %$(3,219)(17.9)%

__________________

N/M data not meaningful

Revenue, Food, beverage, and packaging, Labor, Occupancy, and Other operating expenses:

The increases in Revenue, Food, beverage, and packaging, Labor, Occupancy, and Other operating expenses are primarily driven by the growth of our CAVA Segment. Refer to “CAVA Segment Results” above for more information.

General and administrative expenses:

The increase in general and administrative expenses was primarily due to investments to support future growth and executive transition costs, partially offset by lower performance-based incentive compensation and legal costs. 

Depreciation and amortization:

The increase in depreciation and amortization was primarily driven by the addition of assets from the 74 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended October 6, 2024 and technology improvements. 

Pre-opening costs:

The increase in pre-opening costs was due to the volume of new CAVA restaurants under construction and higher costs on a per unit basis.

Interest income, net:

The decrease in interest income, net, was due to lower interest rates on short term investments in the current quarter.

19

Provision for (benefit from) income taxes:

The effective tax rate for the twelve weeks ended October 5, 2025 was 28.6%. The effective tax rate for the twelve weeks ended October 6, 2024 was (0.3)% as the amount of income tax expense was immaterial prior to the Company’s release of its valuation allowance against deferred tax assets in the fourth quarter of fiscal 2024.

Comparison of the forty weeks ended October 5, 2025 and October 6, 2024

CAVA Segment Results

The following table summarizes the results of the CAVA segment:

Forty Weeks EndedOctober 5,2025October 6,2024Change(in thousands)$% of Revenue$% of Revenue$%Revenue$896,518 100.0 %$729,173 100.0 %$167,345 22.9 %Restaurant operating expenses (excluding depreciation and amortization)Food, beverage, and packaging265,679 29.6 212,414 29.