Company: CAVA
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001639438-25-000007
Chunk: 43

Company: CAVA GROUP, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 43
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, 2025(in thousands)Gross unrealizedSecurity Type CategoryAmortized CostGainsLossesEstimated Fair ValueAsset backed$9,656 $1 $(3)$9,654 Commercial deposits8,732 2 — 8,734 Corporate bonds64,490 12 (23)64,479 U.S. government bonds12,751 — (7)12,744 Fixed income debt securities95,629 15 (33)95,611 Note Receivable5,000 429 — 5,429 Total$100,629 $444 $(33)$101,040 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 July 13, 2025. As of July 13, 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 in fixed income debt securities by contractual maturities were as follows:

8

July 13, 2025(in thousands)Amortized CostEstimated Fair ValueLess than one year$73,160 $73,143 1.0 to 2.0 years17,168 17,167 2.0 to 3.0 years5,153 5,153 More than 3.0 years148 148 Total$95,629 $95,611 

4.    FAIR VALUE

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement accounting guidance creates a fair value hierarchy to prioritize the inputs used to measure value into three categories. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement, where Level 1 is the highest category and Level 3 is the lowest category. The three levels are defined as follows