CAVA Group (CAVA) Q1 2025 earnings summary

Executive summary

• Revenue grew 28.2% year-over-year to $328.5 million in Q1 2025, with same restaurant sales up 10.8% and guest traffic up 7.5%.

• Net income increased to $25.7 million, up 83.7%–115.3% year-over-year, and adjusted EBITDA rose 34.6% to $44.9 million.

• Opened 15 net new restaurants, expanding to 382 locations, an 18.3% increase year-over-year.

• Surpassed $1 billion in trailing 12-month revenue, reinforcing leadership in Mediterranean cuisine.

• Strong brand momentum and guest engagement through loyalty, marketing, and digital initiatives.

Financial highlights

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

• Free cash flow was $2.7 million; cash flow from operations reached $38.6 million.

• General and administrative expenses (ex-stock comp) were 10.5% of revenue, down from 11.1% year-over-year.

• Ended quarter with $289.4 million in cash and $79.9 million in investments, no debt, and $75 million undrawn revolver.

• Diluted EPS was $0.22, up from $0.10–$0.12 in Q1 2024.

Outlook and guidance

• Projecting 64–68 net new restaurant openings and 6%–8% same restaurant sales growth for full year 2025.

• Restaurant-level profit margin expected between 24.8%–25.2%; adjusted EBITDA guidance of $152–$159 million.

• No additional menu price increases planned for 2025; vigilant on supply chain and tariff impacts.

• Effective tax rate for 2025 expected between 14%–18%.

• Pre-opening costs expected at $14.5M–$15.5M.