In This Article:
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Revenue: Increased 28.2% year over year to $328.5 million.
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Same Restaurant Sales Growth: Increased 10.8%, driven by 7.5% traffic growth.
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Net New Restaurants: Opened 15 net new restaurants, totaling 382 locations, an 18.3% increase year over year.
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Adjusted EBITDA: $44.9 million, a 34.6% increase over the first quarter of 2024.
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Net Income: $25.7 million, an 83.7% increase over the first quarter of 2024.
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Free Cash Flow: $2.7 million.
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Restaurant Level Profit: $82.3 million or 25.1% of revenue, a 27.4% increase from the first quarter of 2024.
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Food, Beverage, and Packaging Costs: 29.3% of revenue, up 110 basis points due to steak impact.
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Labor and Related Costs: 25.7% of revenue, a decrease of 30 basis points from the first quarter of 2024.
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Occupancy and Related Expenses: 7.4% of revenue, an improvement of 60 basis points from the first quarter of 2024.
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General and Administrative Expenses: 10.5% of revenue, a 60-basis-point improvement from the first quarter of 2024.
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Cash and Investments: $369.4 million with zero debt outstanding.
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Full Year 2025 Outlook: 64 to 68 net new restaurant openings; same restaurant sales growth of 6% to 8%; restaurant level profit margin between 24.8% and 25.2%.
Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cava Group Inc (NYSE:CAVA) reported a 28.2% increase in revenue for the first quarter of 2025.
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Same restaurant sales grew by 10.8%, driven by a 7.5% increase in traffic.
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The company opened 15 net new restaurants, expanding its footprint to 382 locations, an 18.3% increase year over year.
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Adjusted EBITDA increased by 34.6% to $44.9 million compared to the first quarter of 2024.
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Cava Group Inc (NYSE:CAVA) surpassed $1 billion in revenue on a trailing 12-month basis, highlighting its leadership in the Mediterranean cuisine category.
Negative Points
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Food, beverage, and packaging costs increased by 110 basis points due to the impact of steak, affecting overall profit margins.
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Despite strong growth, the company faces ongoing macroeconomic uncertainties that could impact future performance.
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Labor and related costs remain a significant expense, although they decreased slightly as a percentage of revenue.
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Pre-opening expenses increased to $4.5 million, reflecting higher costs associated with new restaurant openings in higher rent areas.
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The company anticipates potential challenges in maintaining the same restaurant sales growth rate due to lapping previous year's steak offerings.