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CAVA Q1 Earnings Surpass Estimates, Same-Store Sales Rise Y/Y

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CAVA Group, Inc. (CAVA - Free Report) reported first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

CAVA’s Q1 Earnings & Revenue Discussion

The company reported adjusted earnings per share (EPS) of 22 cents, which beat the consensus estimate of 14 cents. It reported an adjusted EPS of 10 cents in the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

CAVA Group, Inc. Price, Consensus and EPS Surprise

CAVA Group, Inc. Price, Consensus and EPS Surprise

CAVA Group, Inc. price-consensus-eps-surprise-chart | CAVA Group, Inc. Quote

Quarterly revenues of $331.8 million topped the consensus mark by 0.4%. The top line increased 28.1% on a year-over-year basis. The upside was backed by a strong same-restaurant sales increase of 10.8%. Also, solid contributions from 73 net new restaurant openings added to the positives.

Operating Highlights of CAVA

During the fiscal first quarter, general and administrative expenses amounted to $41.4 million (or 12.5% of revenues) compared to $33.8 million (13.1%) reported in the prior-year quarter.

Excluding equity-based compensation, these expenses were $34.7 million (or 10.5% of revenues) compared with $28.7 million (11.1%) reported in the same period last year. The 60 basis point improvement was mainly attributed to leverage from increased sales, partially offset by strategic investments aimed at supporting long-term growth.

The company reported adjusted EBITDA of $44.9 million compared with $33.9 million reported in the prior-year quarter. Adjusted EBITDA margin during the quarter came in at 13.5% compared with 12.9% reported in the prior-year quarter.

CAVA’s Q1 Margins

CAVA's restaurant-level profit margin was 25.1%, slightly down from 25.2% in the first quarter of fiscal 2024. The decline was attributed to higher input costs related to the launch of grilled steak in the second quarter of fiscal 2024 and increased wage investments. These impacts were partially offset by leverage from higher sales.

Balance Sheet

As of April 30, 2025, the company had cash and cash equivalents of $289.4 million compared with $366.1 million as of Dec. 29, 2024.

Total liabilities at the end of the fiscal first quarter were $502.2 million compared with $474.1 million reported at fiscal 2024-end.

CAVA’s Fiscal 2025 Outlook

In fiscal 2025, the company expects to open 64-68 net new CAVA restaurants, up from the prior range of 62-66. It expects same-restaurant sales growth to be in the range of 6-8%, while the restaurant-level profit margin is anticipated to be between 24.8% and 25.2%.

The company expects pre-opening cost estimates to be in the range of $14.5 million to $15.5 million, compared to the previous range of $14 million to $15 million. It expects adjusted EBITDA to be between $152 million and $159 million, up from the prior estimate of $150 million to $157 million.

CAVA’s Zacks Rank

CAVA currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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