Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 225

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 7
Chunk 225
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963,713 $728,700 Net income margin113.5 %1.8 %Adjusted EBITDA margin13.1 %10.1 %

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1    Net income margin for fiscal 2024 includes the impact of the $80.1 million benefit from the VA Release.

The following table provides a reconciliation of net income to Adjusted Net Income and net income margin to Adjusted Net Income margin for the fiscal years indicated: 

($ in thousands)20242023Net income$130,319 $13,280 Non-GAAP AdjustmentsTax benefit from VA Release(80,100)— Adjusted Net Income$50,219 $13,280 Revenue$963,713 $728,700 Net income margin13.5 %1.8 %Adjusted Net Income margin5.2 %1.8 %

Liquidity and Capital Resources

We assess our liquidity in terms of our ability to generate adequate amounts of cash to meet current and future needs. Our expected primary uses on a short- and long-term basis are for the expansion of our restaurant base, working capital, and other capital expenditures. 

Our rapid expansion has been significantly aided by the Zoes Kitchen acquisition, which enabled us to expand our CAVA restaurant base in a capital-efficient manner. While conversions required initial capital investments, such costs were typically significantly lower for a conversion as compared to a new opening. Our conversion strategy was complete as of October 20, 2023; therefore, capital expenditure requirements relating to new CAVA Restaurant openings on a per restaurant basis in fiscal 2024 were higher than fiscal 2023, and will continue to be higher in future periods.

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 other working capital obligations. See Item 8. “Financial Statements and Supplementary Data,” Note 6 (Debt) and Note 8 (Leases) to our consolidated financial statements for more information. Our sources of liquidity could be affected by factors described Part I, Item 1A. “Risk Factors.” Depending on the severity and direct impact of these factors on us, we may not be able to secure additional financing on acceptable terms, or at all.

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Cash Overview

We