Company: CAVA
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001639438-25-000007
Chunk: 62

Company: CAVA GROUP, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 2
Chunk 62
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 %5.8 %

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1    Reflects an allocation of income tax expense excluding the net benefit from the release of the valuation allowance previously recorded against our deferred tax assets, or the VA Release, recorded in Q4 2024 assuming a consistent effective tax rate.

Liquidity and Capital Resources

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

24

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 working capital requirements. Our sources of liquidity could be affected by general macroeconomic conditions, as well as tariff policy and geopolitical tensions between the United States and foreign countries, as well as the factors described under the section entitled “Risk Factors” in our 2024 Annual Report. 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.

Cash Overview

We had cash and cash equivalents of $290.2 million and $366.1 million as of July 13, 2025 and December 29, 2024, respectively. In addition, we had investments in fixed income debt securities of $95.6 million as of July 13, 2025. For the twenty-eight weeks ended July 13, 2025, our operations were funded from cash flows from operations. 

Cash Flows

The following table summarizes our cash flows:

Twenty-Eight Weeks EndedChange(in thousands)July 13,2025July 14,2024$%Net cash provided by operating activities$98,895 $87,295 $11,600 13.3 %Net cash used in investing activities(177,419)(59,882)(117,537)196.3 Net cash provided by (used in) financing activities2,576 (16,093)18,669 (116.0)Net change in cash and cash equivalents$(75,948)$11,320 $(87,268)(770.9)%

Operating Activities:

The increase in net cash provided