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Jul 13
CAVA Q2 2025 Earnings Report
Reported strong revenue growth and solid margins, driven by new restaurant openings and steady same-restaurant sales gains.
Key Takeaways
CAVA Group delivered Q2 2025 revenue of $280.6M, up 20.3% year-over-year, supported by 16 net new restaurant openings and 2.1% same-restaurant sales growth. Net income was $18.4M with EPS of $0.16, while restaurant-level profit margin remained strong at 26.3%. The company ended the quarter with 398 restaurants and $290.2M in cash.
Revenue rose 20.3% to $280.6M, driven by new openings and menu mix improvements.
Net income was $18.4M, with EPS of $0.16 and Adjusted EPS also $0.16.
16 net new CAVA restaurants opened, bringing the total to 398.
Restaurant-level profit margin was 26.3%, supported by strong operations despite higher input costs.
CAVA
CAVA
CAVA Revenue by Segment
Revenue by Segment
CAVA Revenue
CapyFin.com Forward Guidance
CAVA updated its full-year 2025 outlook, increasing net new restaurant opening guidance to 68-70 while moderating same-restaurant sales growth expectations.
Positive Outlook
- Raised net new restaurant opening guidance to 68-70 for FY2025.
- Maintains strong restaurant-level profit margin guidance at 24.8%-25.2%.
- Adjusted EBITDA guidance maintained at $152M-$159M.
- Continued AUV strength with new restaurant class tracking above $3M.
- Steady expansion toward goal of 1,000 restaurants by 2032.
Challenges Ahead
- Lowered same-restaurant sales growth guidance to 4%-6% from 6%-8%.
- Input cost pressures from menu additions like grilled steak.
- Incremental wage investments affecting margins.
- Macroeconomic uncertainty may impact traffic trends.
- Higher pre-opening costs forecast at $15.5M-$16.5M.