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Apr 20
CAVA Q1 2025 Earnings Report
CAVA posted strong first-quarter results driven by robust same-store sales growth and new restaurant openings.
Key Takeaways
CAVA Group delivered a solid performance in Q1 2025 with a 28.2% revenue increase, fueled by strong same-restaurant sales and continued expansion. The company achieved positive net income and adjusted EBITDA growth, highlighting operational efficiency and brand momentum.
Revenue rose 28.2% year-over-year to $331,826,000.
Net income increased to $25,707,000 with a 7.7% net income margin.
CAVA opened 15 net new restaurants, reaching 382 total locations.
Same-restaurant sales grew 10.8%, with traffic up 7.5%.
CAVA
CAVA
CAVA Revenue by Segment
Revenue by Segment
CAVA Revenue
CapyFin.com Forward Guidance
CAVA slightly raised its 2025 outlook, expecting improved adjusted EBITDA and restaurant expansion despite elevated pre-opening costs.
Positive Outlook
- Raised guidance for adjusted EBITDA to $152M–$159M.
- Maintained strong same-restaurant sales outlook at 6.0%–8.0%.
- Increased projected net new restaurant openings to 64–68.
- Maintained restaurant-level profit margin guidance at 24.8%–25.2%.
- Continued momentum from recent successful restaurant openings.
Challenges Ahead
- Slight increase in pre-opening cost forecast to $14.5M–$15.5M.
- Potential margin pressure from input cost inflation (e.g., grilled steak launch).
- Incremental wage investments could weigh on profits.
- Macroeconomic uncertainty and challenging weather may impact traffic.
- Valuation risks if expansion fails to meet expectations.