0001628280-25-049080
SEC filingCAVA's Q3 2025 Notes show strong restaurant-level profit, no debt, and a $5M investment commitment.
Cash and cash equivalents stood at $284.6M as of October 5, 2025, down from $366.1M at year-end 2024, primarily due to investments in fixed income securities ($103.1M fair value) and capital expenditures. The company had no borrowings under its $75M revolving credit facility, with $0.9M in letters of credit outstanding. Total assets were $1.322B, with stockholders' equity of $769.0M, reflecting continued improvement in accumulated deficit to $(258.5M) from $(317.3M).
The only material commitment disclosed is a contingent $5.0M investment in a convertible promissory note (Hyphen Technologies), in addition to the $5.0M already invested. Letters of credit totaled $0.9M. No other significant purchase commitments or long-term contractual obligations were quantified.
There were no share repurchases or dividends during the period. Capital expenditures were $121.3M for the forty weeks, primarily for new restaurant openings and technology improvements. The company has not utilized its revolving credit facility and remains debt-free.
CAVA operates two segments: CAVA (restaurants) and CAVA Foods (CPG). CAVA is the only reportable segment, generating $289.8M in revenue for Q3 2025, with restaurant-level profit of $71.2M (24.6% margin). CAVA Foods revenue was $2.5M. All revenue is earned in the United States; no geographic breakdown provided.
Operating cash flow (CFO) of $144.5M comfortably covers net income of $58.8M, indicating strong cash generation. Key non-cash add-backs include depreciation & amortization ($55.3M) and equity-based compensation ($11.8M). Capex of $121.3M represents a 51% increase YoY, reflecting aggressive restaurant expansion (415 locations as of Oct 2025). Implied free cash flow (CFO less capex) is $23.2M, down from $50.8M in the prior year due to higher investment. The FCF is insufficient to cover capital returns (only $2.7M in share repurchases), and no dividends were paid.
Working capital swings were notable: operating lease liabilities increased $64.7M, offset by a $53.8M rise in operating lease assets, a pattern consistent with new store openings. Investing outflows include $116.2M in debt security purchases and $5.0M in a convertible note, which are non-core to operations. Tax payments were low at $1.5M. The financing section shows a $2.7M inflow from 'shares purchased under equity plans,' which may represent proceeds from employee share purchases rather than repurchases.
Overall, cash generation remains healthy, but heavy capex and investment activities resulted in a net cash outflow of $81.6M for the period.