Loading...
01/10 19:47
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings report reveals strong financial performance, including a 28.2% revenue increase and 83.7% net income growth. Despite competitive pressures and economic factors, CAVA's consistent performance across regions and robust consumer resilience are noteworthy. The Q&A section reflects positive engagement with loyalty programs and operational improvements, though management was vague about specific metrics. However, the lack of a share repurchase program and increased pre-opening costs are minor negatives. Overall, the positive financials and optimistic guidance suggest a likely stock price increase in the 2% to 8% range over the next two weeks.
Revenue $328.5 million, a 28.2% increase year-over-year.
Same Restaurant Sales Growth 10.8% increase, driven by 7.5% traffic growth.
Net Income $25.7 million, an 83.7% increase over the first quarter of 2024.
Adjusted EBITDA $44.9 million, a 34.6% increase over the first quarter of 2024.
Restaurant Level Profit $82.3 million or 25.1% of revenue, a 27.4% increase year-over-year.
Free Cash Flow $2.7 million.
Cash and Investments $369.4 million.
Cash Flow from Operations $38.6 million, compared to $38.4 million during Q1 of 2024.
Equity-Based Compensation $6.7 million, an increase from $5.2 million in the prior-year quarter.
General and Administrative Expenses 10.5% of revenue, improved by 60 basis points from 11.1% in Q1 of 2024.
Occupancy and Related Expenses 7.4% of revenue, improved by 60 basis points from Q1 of 2024.
Other Operating Expenses 12.5% of revenue, improved by 20 basis points from Q1 of 2024.
Pre-Opening Expenses $4.5 million, an increase from $3.4 million in the prior-year quarter.
New Product Launches: Launched Hot Harissa Pita Chips and two new chef-curated bowls, Steak and Harissa and Spicy Lamb and Avocado, as part of the Spice World campaign.
Market Expansion: Expanded footprint to 26 states and the District of Columbia, with new locations in Indiana and Hialeah, Florida, and upcoming entries in Detroit and Pittsburgh.
Operational Efficiencies: Rolled out a new labor deployment and scheduling model, leading to improved productivity across both dayparts.
Connected Kitchen Initiative: Progressing with the Kitchen Display System rollout to 250 restaurants and implementing AI video technology in four locations to enhance operational efficiency.
Strategic Shifts: Focus on enhancing guest experience through Project Soul initiative and deepening personal relationships with guests via loyalty programs.
Competitive Pressures: CAVA faces competitive pressures in the restaurant industry, particularly as it expands its footprint and aims to establish Mediterranean cuisine as a major cultural category.
Regulatory Issues: The company is monitoring potential impacts related to tariffs, although its exposure is limited due to the majority of ingredients being domestically sourced or covered under existing contracts.
Supply Chain Challenges: CAVA is vigilant in monitoring its supply chain for any disruptions, particularly those that may arise from changing tariffs or economic conditions.
Economic Factors: The company acknowledges a fluid macroeconomic environment that could impact consumer behavior and overall business performance.
Labor Costs: CAVA has increased team member wages by 3%, which could impact labor-related costs despite a decrease in labor costs as a percentage of revenue.
Pre-opening Costs: The company has experienced an increase in pre-opening expenses due to the timing of projects and openings in higher rent geographies.
New Restaurant Openings: CAVA plans to open 64 to 68 net new restaurants in 2025, aiming for at least 1,000 restaurants by 2032.
Same Restaurant Sales Growth: CAVA anticipates same restaurant sales growth of 6% to 8% for the full year 2025.
Restaurant Level Profit Margin: Expected restaurant level profit margin between 24.8% and 25.2% for 2025.
Project Soul Initiative: CAVA is committed to enhancing the in-restaurant experience through the Project Soul initiative, focusing on creating inviting spaces.
Spice World Campaign: Launching the Spice World campaign this summer, featuring new spicy menu items to enhance customer engagement.
Loyalty Program: Plans to roll out a new tiered structure for the loyalty program to enhance guest engagement.
Connected Kitchen Initiative: Continuing to implement the Connected Kitchen initiative to improve operational efficiency and guest satisfaction.
Revenue Guidance: CAVA expects adjusted EBITDA between $152 million and $159 million for 2025.
Preopening Costs: Preopening costs are expected to be between $14.5 million and $15.5 million for 2025.
Effective Tax Rate: Expected effective tax rate for fiscal 2025 to be between 14% and 18%.
Cash Flow: CAVA reported free cash flow of $2.7 million in Q1 2025.
Consumer Resilience: CAVA's guidance reflects the evolving macroeconomic landscape and the resilience of its consumer base.
Share Repurchase Program: None
The earnings report reveals strong financial performance, including a 28.2% revenue increase and 83.7% net income growth. Despite competitive pressures and economic factors, CAVA's consistent performance across regions and robust consumer resilience are noteworthy. The Q&A section reflects positive engagement with loyalty programs and operational improvements, though management was vague about specific metrics. However, the lack of a share repurchase program and increased pre-opening costs are minor negatives. Overall, the positive financials and optimistic guidance suggest a likely stock price increase in the 2% to 8% range over the next two weeks.
Cava's earnings call highlights strong financial performance with a significant revenue increase and positive same restaurant sales growth. Despite higher costs, the company maintains a robust profit margin and reports positive net income growth. The Q&A section reveals optimism about market expansion and innovation, though some management responses lack specificity. While no shareholder return plan was announced, the overall sentiment is positive, bolstered by strong earnings and optimistic guidance. The absence of a market cap limits precise prediction, but the sentiment leans towards a positive stock price movement.
The earnings call highlighted strong financial performance, including a 39% revenue increase and 69% EBITDA growth, despite higher labor and food costs. The strategic initiatives, such as new restaurant openings and technological advancements, are promising. The Q&A section revealed positive sentiment from analysts, despite some concerns about labor costs and regulatory compliance. The optimistic guidance and strong cash position suggest a positive outlook, likely leading to a stock price increase in the 2% to 8% range over the next two weeks.
The earnings call presents a strong financial performance with significant growth in net income and EBITDA. The launch of the grilled steak and digital initiatives are expected to enhance sales. Although management expresses caution due to macroeconomic uncertainties, the positive guidance and strategic investments, such as the loyalty program and new restaurant openings, suggest a positive outlook. The Q&A section shows analysts' positive sentiment, despite some unclear responses. Overall, the strategic developments and optimistic guidance outweigh concerns, leading to a positive stock price prediction.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
