0001628280-26-036625
SEC filingCAVA grew revenue 32.1% YoY driven by 20 net new openings and same-restaurant sales growth of 9.7%.
Revenue for the sixteen weeks ended April 19, 2026 totaled $438.3 million, up 32.1% from $331.8 million in the prior-year period. The growth was driven by a $73.7 million contribution from 92 net new CAVA restaurant openings since the prior-year period and a 9.7% same-restaurant sales increase (6.8% from guest traffic and 2.9% from menu price/product mix). Operating income surged 60.8% to $25.3 million, with operating margin expanding 110 bps to 5.8%, reflecting revenue growth outpacing expense increases. Net income declined 8.3% to $23.6 million due to a $11.8 million unfavorable swing in income tax provision (effective rate 21.5% vs. -26.3%), largely from lower excess tax benefits on equity-based compensation.
Restaurant operating costs as a percentage of revenue improved 10 bps to 74.6%, as food, beverage, and packaging costs decreased 30 bps to 29.1% due to improved mix. Labor costs remained flat at 25.5%, with higher average hourly wages (2%) offset by leverage. Occupancy costs dropped 60 bps to 6.8% from operating leverage. Other operating expenses increased 80 bps to 13.2% due to higher third-party delivery mix. General and administrative expenses decreased 70 bps to 11.8% on sales leverage, despite higher performance-based compensation and equity-based costs. Depreciation rose 22.4% from new store openings. Pre-opening costs increased 37.5% due to more restaurants under construction. Impairment and asset disposal costs grew to $2.7 million from $1.7 million.
The CAVA restaurant segment generated $434.4 million in revenue (99.1% of total), up 32.2% YoY. Restaurant-level profit increased 32.3% to $108.9 million, maintaining a 25.1% margin. The margin stability reflected higher sales offset by incremental wage investments and delivery costs. Same-restaurant sales of 9.7% contributed to traffic and mix gains. The Other segment (CPG and internal production) grew revenue 16.0% to $3.9 million, with food costs declining 740 bps to 32.5% due to lower raw material input costs.
Management did not provide explicit forward guidance but emphasized ongoing restaurant expansion, with 20 net new openings in the period and 92 total new units since the prior year. The digital revenue mix rose 190 bps to 39.9%, indicating sustained adoption. Adjusted EBITDA margin improved 60 bps to 14.1%, underscoring operating leverage. Liquidity remains strong with $295.8 million cash and $107.2 million in investments, plus a credit facility. Management expects to fund growth from operating cash flows and existing resources, with no material changes in commitments.
As of April 19, 2026, CAVA Group holds a robust liquidity position with $295.8 million in cash and cash equivalents and $107.2 million in fixed income debt securities (fair value), totaling $403.0 million in liquid assets. The company has no outstanding interest-bearing debt, aside from operating lease liabilities of $498.5 million (current and non-current). The credit facility, recently amended in March 2026, provides $150 million in revolving commitments with $149.1 million available net of $0.9 million in outstanding letters of credit. The facility matures in March 2031, enhancing financial flexibility. Shareholders' equity increased to $810.0 million from $779.7 million at year-end 2025, driven by net income and equity-based compensation.
Note 9 describes purchase obligations arising in the ordinary course of business, primarily for produce, ingredients, supplies, and materials for new restaurant openings. These commitments are generally short-term and binding, but no specific aggregate amounts were disclosed. The company also has six irrevocable letters of credit totaling $0.9 million in favor of landlords, which automatically renew. Litigation contingencies are not expected to be material.
No share repurchases or dividends were disclosed in the notes. The company has not utilized its credit facility; thus, no debt issuance or repayment occurred during the period. Capital expenditures are not explicitly detailed in the notes but are reflected in the cash flow statement ($48.6 million for property and equipment). The notes highlight equity-based compensation of $7.7 million (including payroll taxes) and unrecognized compensation costs of $46.6 million across stock options, RSUs, and PSUs.
Note 12 identifies two operating segments: CAVA (company-owned restaurants) and CAVA Foods (production and CPG sales). CAVA is the sole reportable segment as CAVA Foods is below quantitative thresholds. For the sixteen weeks ended April 19, 2026, CAVA segment revenue was $434.4 million, representing 99.1% of total consolidated revenue. Restaurant-level profit was $108.9 million, yielding a 25.1% margin, up from 25.1% in the prior year period (revenue $328.5 million, profit $82.3 million). The CAVA Foods segment contributed $3.9 million in other revenue and a loss of $2.3 million (negative profit). All revenue is earned in the United States. The CODM uses restaurant-level profit for resource allocation, excluding corporate expenses.
Operating cash flow of $64.1M significantly exceeded net income of $23.6M, yielding a robust cash conversion ratio of 2.7x. Primary adjustments included $25.5M depreciation, $6.7M equity-based compensation, and $6.4M deferred taxes. Working capital was a modest $3.0M use, driven by operating lease assets/liabilities changes. Capex of $48.6M was 2.0x depreciation, reflecting aggressive restaurant expansion (459 locations at period end). No free cash flow is reported, but CFO less capex yields ~$15.5M. Capital returns were minimal ($0.2M share repurchases, no dividends). The prior period saw $38.6M CFO and $35.9M capex, with similar conversion. The substantial increase in CFO relative to net income highlights improving operational efficiency, though capex intensity remains high for growth.