Company: CAVA
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007882
Chunk: 184

Company: CAVA GROUP, INC.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 184
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 cards and loyalty program is included in restaurant revenue. Refer to Note 5 (Supplemental Balance Sheet Information) for the Company’s gift card and loyalty liabilities balances. Revenue recognized from the redemption of gift cards that was included in the gift card liability at the beginning of the year was $2.0 million, $1.0 million, and $0.6 million during fiscal 2024, 2023, and 2022, respectively. Changes in the CAVA Rewards liability, which is included in accrued expenses and other on the accompanying consolidated balance sheets, were as follows for the fiscal years indicated:(in thousands)202420232022CAVA Rewards liability, beginning balance$1,787 $1,255 $1,353 Revenue deferred10,718 8,627 6,794 Revenue recognized(8,727)(8,095)(6,892)CAVA Rewards liability, ending balance$3,778 $1,787 $1,255 

4.    FAIR VALUE

The following table summarizes certain assets measured at fair value on a non-recurring basis due to impairment charges. The fair value of these assets was measured using an income approach (discounted cash flow method), which relies on Level 3 inputs as described in Note 2 (Basis of Presentation and Significant Accounting Policies).  (in thousands)LevelDecember 31,2023Certain property and equipment, net3668

73

The following tables presents impairment charges by reportable segment and asset disposal costs recognized during the fiscal years indicated:(in thousands)202420232022Impairment chargesCAVA$— $547 $1,247 Zoes Kitchen— 745 6,053 Other— — 1,676 Total impairment— 1,292 8,976 Total asset disposal costs5,055 3,607 10,777 Total impairment and asset disposal costs$5,055 $4,899 $19,753 

Impairment charges within the Zoes Kitchen segment were recognized in connection with the Company’s conversion strategy. Impairment charges within Other relate to the relocation of our restaurant collaboration center. Asset disposal costs primarily relate to normal course replacement of certain assets in our restaurants in all fiscal years presented, the impact of Hurricane Helene on one of our restaurants in North Carolina in fiscal 2024, and the Zoes Kitchen segment in connection with our conversion strategy as described in Note