Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 27

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1A
Chunk 27
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 Further, we currently expect that a meaningful portion of our new restaurants opening in fiscal 2025 and beyond will have drive-thru pick-up capabilities, which typically require additional capital expenditures and higher real estate costs as well as incremental infrastructure and construction costs. 

These efforts and additional expenses may prove more expensive than we expect, and we cannot guarantee that we will be able to increase our revenue to offset such expenses. Our revenue growth may slow or our revenue may decline for a number of other reasons, including reduced demand for our food, increased competition, or if we cannot capitalize on growth opportunities. If our revenue does not grow at a greater rate than our operating expenses, we will not be able to maintain profitability.

We may not realize the anticipated benefits from past and potential future acquisitions, investments or other strategic initiatives.

From time to time we may consider opportunities to acquire or make investments in new or complementary businesses, facilities, technologies, or products, or enter into strategic initiatives, which may enhance our capabilities, expand our manufacturing network, complement our current offerings, or expand the breadth of our markets. For example, we acquired Zoes Kitchen in 2018 with the goal of significantly expanding the size and geographic scope of our business. We completed the conversion of Zoes Kitchen locations into CAVA restaurants as of October 2023.

Entering into acquisitions and investments and other strategic initiatives involve numerous risks, including:

•expenses, delays, or difficulties in integrating acquired business, facilities, technologies, or products into our organization, including the failure to realize expected synergies and the inability to retain and integrate personnel;

•expending significant cash or incurring substantial debt to finance acquisitions, which indebtedness may restrict our business or require the use of available cash to make interest and principal payments;

•issues maintaining uniform standards, procedures, controls, and policies;

•diversion of management’s attention and resources from operating our business to effectively execute the integration;

•adverse effects on existing business relationships with suppliers, distributors, and partners;

•guest acceptance of the acquired company’s offerings;

•our ability to meet our targeted revenue, profit, and cash flow from acquired companies;

•the possibility that we have acquired substantial contingent or unanticipated liabilities in connection with acquisitions;

•the inability to identify all material issues concerning the companies we acquire or invest in; and

•the possibility that investments we have made may decline significantly in value, which could lead to the potential impairment of the carrying value of goodwill associated with acquired businesses.

We do not know if we will be able to identify acquisitions or