Company: CAVA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049080
Chunk: 43

Company: CAVA GROUP, INC.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 43
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 income, net of tax. Fixed income debt securities are presented within investments at fair value on the accompanying unaudited condensed consolidated balance sheet. Note ReceivableDuring the forty weeks ended October 5, 2025, the Company made a $5.0 million investment in a convertible promissory note of Hyphen Technologies, Inc. (the “Note Receivable”), which develops and provides automated makelines designed to improve the speed and efficiency of food production. The Company intends to test this technology in its digital business. The Company is committed to make an additional investment of $5.0 million upon the achievement of a predefined milestone event. This contingent investment will be made in the form of a convertible promissory note at terms that are substantially similar to the Note Receivable. The Note Receivable is presented within other long-term assets on the accompanying unaudited condensed consolidated balance sheet. Refer to Note 4 (Fair Value) for more information. 

8

The Company’s investments were as follows:October 5, 2025(in thousands)Gross unrealizedSecurity Type CategoryAmortized CostGainsLossesEstimated Fair ValueAsset backed$10,349 $14 $— $10,363 Commercial deposits3,132 2 — 3,134 Corporate bonds67,029 121 — 67,150 U.S. government bonds22,435 33 — 22,468 Fixed income debt securities102,945 170 — 103,115 Note Receivable5,000 429 — 5,429 Total$107,945 $599 $— $108,544 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 October 5, 2025. As of October 5, 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