CAVA Group (CAVA) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 growth with full-year revenue up 35.1%, driven by 13.4% same restaurant sales growth and 58 net new restaurant openings, expanding to 25 states and D.C.

• Q4 2024 revenue reached $225.1M, up 36.8% year-over-year, with same-restaurant sales up 21.2% and traffic up 15.6%.

• Enhanced guest engagement through a reimagined loyalty program, menu innovation, and digital initiatives, driving increased frequency and brand affinity.

• Advanced operational efficiency with new labor models and technology, including generative AI video and kitchen display systems, improving productivity and guest experience.

• Full-year net income was $130.3M, including an $80.1M tax benefit; adjusted net income was $50.2M.

Financial highlights

• Full-year 2024 revenue totaled $954.3M, up 35.1% year-over-year; Q4 revenue was $225.1M, up 36.8%.

• Adjusted EBITDA for FY 2024 was $126.2M (up 71%); Q4 Adjusted EBITDA was $25.1M (up 60%).

• Free cash flow for 2024 was $52.9M, a $94.6M increase over 2023; Q4 free cash flow was $2.1M.

• Restaurant-level profit margin for FY 2024 was 25.0%; Q4 margin was 22.4%.

• Average unit volume (AUV) for the year was $2.9M, up from $2.6M.

Outlook and guidance

• 2025 guidance: 62–66 net new restaurants, same-restaurant sales growth of 6%–8%, restaurant-level profit margin of 24.8%–25.2%, Adjusted EBITDA of $150M–$157M.

• No further menu price increases planned for 2025 after a 1.7% adjustment in January.

• Stock-based compensation expected at $20M–$22M in 2025, with 60% recognized in H1.

• Effective tax rate expected between 15%–20% for 2025.