Company: CAVA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049080
Chunk: 17

Company: CAVA GROUP, INC.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 17
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 Company. Typical inputs and assumptions to pricing models used to value the Company’s 

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investments in fixed income debt securities include, but are not limited to, benchmark yields, reported trades, broker-dealer quotes, credit spreads, credit ratings, bond insurance (if applicable), benchmark securities, bids, offers, reference data, and industry and economic events. For asset backed securities, inputs and assumptions may also include the structure of issuance, characteristics of the issuer, collateral attributes, and prepayment speeds.Note ReceivableThe Company has elected to account for the Note Receivable described in Note 3 (Investments) under the fair value option. As a result, the embedded conversion feature, which would otherwise require bifurcation, is not accounted for separately. The fair value of the Note Receivable is determined under a market approach utilizing Level 3 inputs such as estimates of the equity value of the underlying business, volatility, and a probability-weighted expected time to exit.The fair value of the Company’s assets that are measured on a recurring basis was as follows:(in thousands)October 5, 2025Security Type CategoryLevel 1Level 2Level 3TotalAsset backed$— $10,363 $— $10,363 Commercial deposits— 3,134 — 3,134 Corporate bonds— 67,150 — 67,150 U.S. government bonds22,468 — — 22,468 Fixed income debt securities22,468 80,647 — 103,115 Note Receivable— — 5,429 5,429 Total$22,468 $80,647 $5,429 $108,544 Assets Measured at Fair Value on a Non-recurring Basis—Assets recognized or disclosed at fair value in the accompanying unaudited condensed consolidated financial statements on a nonrecurring basis may include items such as property and equipment, net, operating lease assets, goodwill, and intangible assets. These assets are measured at fair value whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For the forty weeks ended October 5, 2025 and October 6, 2024, nonrecurring fair value measurements resulting in asset impairments were not material.

5.    SUPPLEMENTAL BALANCE SHEET INFORMATION

Property and equipment, netThe Company’s property and equipment, net, were as follows:(in thousands)October 5,