CAVA Group (CAVA) — FY2025 Annual Results Brief
Filing: 10-K (Annual Report) filed February 25, 2026 | Fiscal Year Ended December 28, 2025
Source: SEC EDGAR CIK 0001639438 | Accession No. 0001628280-26-011296
⚠️ Note: CAVA does not file a Q4 10-Q. The filing referenced is a 10-K covering full fiscal year 2025 (52-week period ended Dec 28, 2025). This brief covers full-year results with Q4 context where available.
Revenue & Growth
CAVA crossed the $1 billion revenue milestone in FY2025, reporting total revenue of $1.18B, up 22.4% YoY from $963.7M. CAVA Restaurant Revenue — the core segment — grew 22.5% to $1.17B. The lift was split roughly $175M from new unit openings and the remainder from same-restaurant sales growth. Average Unit Volume (AUV) rose to $2,934K vs. $2,865K the prior year, with the FY2025 class of new restaurants trending above $3.0M in AUV — a strong signal of brand portability.
Profitability
| Metric | FY2025 | FY2024 |
|---|---|---|
| Restaurant-Level Profit | $285.0M | $238.1M |
| Restaurant-Level Profit Margin | 24.4% | 25.0% |
| Operating Income | $55.3M | $43.1M |
| Operating Margin | 4.7% | 4.5% |
| Net Income | $63.7M | $130.3M* |
| Adjusted Net Income | $63.7M | $50.2M |
| Adjusted EBITDA | $152.8M | $126.2M |
| Adjusted EBITDA Margin | 12.9% | 13.1% |
*FY2024 net income included an $80.1M one-time deferred tax asset valuation allowance release. On an apples-to-apples basis, Adjusted Net Income grew 27% YoY to $63.7M. Restaurant-level margin dipped 60bps, driven by the grilled steak launch input costs, a chicken shawarma LTO, and tariff headwinds — partially offset by operating leverage from higher sales. GAAP EPS: $0.54 diluted.
Same-Store Sales
Same Restaurant Sales grew +4.0% for FY2025, decelerating from +13.4% in FY2024 (which included outsized post-conversion tailwinds). The composition: +2.4% from menu pricing/mix and +1.6% from Guest Traffic. Traffic growth is particularly notable — in this macro environment, any positive traffic comp is a differentiator. Management is consciously pricing below inflation to protect long-term traffic share.
Unit Growth
CAVA opened 72 net new restaurants in FY2025 (vs. 58 in FY2024), entering markets including Indianapolis, South Florida, Pittsburgh, and Detroit. Total system stands at 439 CAVA Restaurants across 28 states + Washington, D.C. as of December 28, 2025. New unit productivity is strong, with the FY2025 cohort trending above $3.0M AUV. Future units will increasingly include drive-thru pick-up capabilities, requiring higher capex per site.
Balance Sheet
CAVA carries a fortress balance sheet with zero traditional debt outstanding:
- Cash & equivalents: $282.9M
- Fixed income investments: $110.1M
- Total liquidity: ~$393M
- Total assets: $1.36B
- Stockholders' equity: $779.7M
- Operating leases: $465.9M (on-balance sheet per ASC 842)
- Revolver (2022 Credit Facility): $0 drawn; amendment/upsize planned for Q1 2026
Operating cash flow was $184.8M in FY2025 (+15% YoY). The company is self-funding its expansion.
Management Outlook
Management flagged the following for FY2026:
- Capex expected to exceed FY2025 as the pace of new openings accelerates
- Plans to amend and upsize the 2022 Credit Facility in Q1 2026 (no immediate borrowing planned)
- Committed to pricing below inflation to drive traffic; unit economics expected to benefit from operating leverage as the base matures
- New unit class AUV tracking above $3.0M, demonstrating scalability of the brand into new geographies
- Drive-thru pickup windows becoming a standard feature for future sites, increasing per-unit cost and real estate requirements
Formal FY2026 numerical guidance is provided in the earnings press release (8-K, filed Feb 24, 2026), not the 10-K.
Key Risks
- Tariffs & food cost inflation — explicitly cited as headwind to food/bev/packaging costs in FY2025; ongoing exposure given supply chain concentration
- Labor costs — average hourly wages rose ~2% in FY2025; minimum wage legislation in key states (CA, MA, TX) remains a watch item
- Same-restaurant sales deceleration — +4.0% in FY2025 vs. +13.4% in FY2024; comps get harder as the base matures; traffic gains could reverse if macro weakens
- New unit execution risk — 72 openings/year puts strain on site selection, construction pipelines, and talent; management acknowledges growth rates may moderate
- Delivery mix creep — digital/delivery mix at 37.9% (+150bps YoY); higher third-party delivery fees are diluting other operating expense margins
- Macroeconomic sensitivity — fast-casual remains a relative value vs. fast food, but discretionary spending pressure could still impact traffic
Source: CAVA Group 10-K filed February 25, 2026 (SEC EDGAR). For Elite Stock Research — elitestockresearch.com