CAVA Group (CAVA) Q1 2025 earnings summary

Executive summary

• Revenue grew 28.2% year-over-year to $328.5 million, driven by 15 net new restaurant openings and 10.8% same restaurant sales growth, including 7.5% guest traffic growth.

• Net income increased to $25.7 million, up 83.7% year-over-year, with adjusted EBITDA rising 34.6% to $44.9 million.

• Restaurant-level profit margin was 25.1%, with AUV rising to $2.93 million and digital revenue mix at 38.0%.

• Opened 15 net new restaurants, expanding to 382 locations, an 18.3% increase year-over-year and entry into Indiana and Florida.

• Surpassed $1 billion in trailing 12-month revenue, reinforcing Mediterranean as a major cuisine category.

Financial highlights

• Restaurant-level profit was $82.3 million (25.1% of revenue), up 27.4% year-over-year.

• Adjusted net income for Q1 2025 was $25.7 million, with diluted EPS at $0.22.

• Free cash flow reached $2.7 million; cash and investments totaled $369.4 million with zero debt.

• General and administrative expenses (excluding stock comp) were 10.5% of revenue, down year-over-year.

• Net cash from operating activities was $38.6 million.

Outlook and guidance

• 2025 guidance: 64-68 net new restaurant openings, same restaurant sales growth of 6%-8%, restaurant-level profit margin of 24.8%-25.2%.

• Adjusted EBITDA expected between $152 million and $159 million, including pre-opening costs.

• Effective tax rate for 2025 projected at 14%-18%, with additional discrete benefit in Q2.

• No further menu price increases planned for 2025 despite macro uncertainty.

• Management expects cash from operations, cash on hand, and credit facility to cover anticipated needs for the next twelve months and foreseeable future.