Company: CAVA
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001639438-25-000007
Chunk: 32

Company: CAVA GROUP, INC.
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 32
---
 other lower input costs.

CAVA labor:

The increase in CAVA labor was primarily due to the 89 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 14, 2024 and higher average hourly wages of approximately 2%. As a percentage of CAVA Revenue, CAVA labor decreased due to the impact of higher sales, partially offset by the aforementioned incremental wage investments.

CAVA occupancy:

The increase in CAVA occupancy was primarily due to the 89 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 14, 2024. As a percentage of CAVA Revenue, CAVA occupancy decreased primarily due to operating leverage associated with higher sales.  

20

CAVA other operating expenses:

The increase in CAVA other operating expenses was primarily due to the 89 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 14, 2024 and CAVA Same Restaurant Sales Growth of 6.6%. As a percentage of CAVA Revenue, CAVA other operating expenses remained flat due to operating leverage associated with higher sales, offset by increases in individually insignificant items.

Other Results

The following table summarizes remaining activity related to CPG operations and the production of dips and spreads used in CAVA restaurants:

Twenty-Eight Weeks EndedJuly 13,2025July 14,2024Change(in thousands)$% of Revenue$% of Revenue$%Revenue$5,710 100.0 %$4,827 100.0 %$883 18.3 %Food, beverage, and packaging2,075 36.3 2,602 53.9 (527)(20.3)Other operating expenses458 8.0 380 7.9 78 20.5 

The increase in revenue noted above was primarily due to higher CPG sales. As a percentage of revenue, food, beverage, and packaging decreased due to operational efficiencies realized since the commencement of operations at our facility in Verona, VA in the first quarter of fiscal 2024.

21

Consolidated Results

The following table summarizes our consolidated results of operations:

Twenty-Eight Weeks Ended(in thousands)July 13,2025July 14,2024Change$% of Revenue$% of Revenue$%Revenue $612,441 100.0 %$492,501 100.0 %$119,940 24.4 %Operating