Company: CAVA
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001628280-25-026077
Chunk: 34

Company: CAVA GROUP, INC.
Filing Date: 2025-05-16
Form: 10-Q
Item: Item 8
Chunk 34
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 Weeks Ended(in thousands)April 20,2025April 21,2024CAVA Rewards liability, beginning balance$3,778 $1,787 Revenue deferred3,354 3,052 Revenue recognized(3,029)(2,954)CAVA Rewards liability, ending balance$4,103 $1,885 

3.     INVESTMENTS

The Company launched an investment portfolio consisting of fixed income debt securities in the current quarter, 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 (“AFS”) and are carried at fair value. The difference between amortized cost, net of credit loss allowances (“amortized cost, net”) and fair value, net of deferred income taxes, is reflected as a component of accumulated other comprehensive loss.  Investments were as follows as of the period indicated:April 20, 2025(in thousands)Gross unrealizedSecurity Type CategoryAmortized CostGainsLossesEstimated Fair ValueAsset backed$9,081 $1 $(7)$9,075 Commercial deposits7,835 — (2)7,833 Commercial paper1,486 — (1)1,485 Corporate bonds56,748 3 (88)56,663 U.S. government bonds4,863 — (2)4,861 Total$80,013 $4 $(100)$79,917 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, profitability, and stock performance.  Based on the Company’s review of its investments in an unrealized loss position, it determined that the losses were due to non-credit factors and, therefore, it does not consider these securities to be credit impaired at April 20, 2025. As of April 20, 2025, the Company did not intend to sell any investments in an unrealized loss position and it is not more likely than not that the Company will be required to sell any investments before recovery of their amortized cost basis.Investments by contractual maturities were as follows as of the period indicated:April 20, 2025(in thousands)Amortized cost basisFair ValueLess than one year$35,