Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 158

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 158
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 invest in business growth or to reduce any applicable indebtedness.

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

($ in thousands)20242023Net income$130,319 $13,280 Non-GAAP AdjustmentsInterest income, net(16,474)(8,852)(Benefit from) provision for income taxes(70,409)768 Depreciation and amortization60,355 47,433 Equity-based compensation17,140 9,575 Other income, net(318)(471)Impairment and asset disposal costs5,055 4,899 Restructuring and other costs580 6,080 Certain non-recurring public company costs— 1,113 Adjusted EBITDA$126,248 $73,825 Revenue$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