CAVA Group (CAVA) Q2 2025 earnings summary

Executive summary

• Revenue grew 20.3% year-over-year to $278.2 million, driven by 16 net new restaurant openings and 2.1% same restaurant sales growth, bringing the total to 398 locations.

• Adjusted EBITDA increased 22.6% to $42.1 million, with net income at $18.4 million for the quarter.

• Restaurant-level profit margin was 26.3%, with restaurant-level profit at $73.3 million, up 19.6% year-over-year.

• Digital revenue mix reached 37.3%, and AUV rose to $2.9 million, up from $2.7 million year-over-year.

• The company surpassed $1 billion in trailing 12-month revenue and remains confident in reaching at least 1,000 restaurants by 2032.

Financial highlights

• Free cash flow year-to-date was $21.9 million, with $98.9 million net cash from operating activities.

• Cash and cash equivalents at quarter end were $290.2 million, with total assets of $1.29 billion and no debt outstanding.

• General and administrative expenses (excluding stock-based compensation) were 9.8% of revenue, down from 10.6% last year.

• Food, beverage, and packaging costs were 29.5% of revenue, labor costs 25%, and occupancy expenses 6.8%.

• Net income margin was 6.5%, down from 8.5% in the prior year quarter.

Outlook and guidance

• Full-year 2025 guidance: 68–70 net new restaurant openings, 4.0%–6.0% same restaurant sales growth, restaurant-level profit margin of 24.8%–25.2%, and Adjusted EBITDA of $152.0–$159.0 million.

• Pre-opening costs expected between $15.5 and $16.5 million.

• Effective tax rate expected between 12%–15% for the year, with cash taxes remaining immaterial until NOLs are utilized.

• Management expects sufficient liquidity for the next twelve months and foreseeable future, supported by cash on hand and an undrawn credit facility.

• Strong pipeline of culinary innovation, including new menu items and technology investments, expected to drive future sales.