Why did CAVA's operating profit fluctuate wildly throughout 2022-2024?

CAVA's operating profit fluctuated wildly throughout 2022-2024 due to several factors: 1. **Revenue Growth**: CAVA's revenue grew significantly, particularly in 2023 and 2024, driven by same-restaurant sales growth and new restaurant openings. For example, CAVA reported a 28.3% increase in revenue in Q4 2024 compared to the previous year. This growth in revenue contributed to the company's profitability. 2. **Cost Management**: The increase in food, beverage, and packaging costs partially offset the operating leverage from higher sales. This suggests that while CAVA was able to generate more revenue, it faced challenges in managing costs, which affected its operating profit margin. 3. **Strategic Initiatives**: CAVA's strategic initiatives, such as the launch of new menu items and a revamped loyalty program, likely contributed to its revenue growth but may have also incurred additional costs that impacted profitability. 4. **Market Conditions**: The overall restaurant industry, including CAVA, is sensitive to market conditions and consumer spending habits. Any fluctuations in these factors can significantly impact a restaurant chain's financial performance. In summary, CAVA's operating profit fluctuations are primarily due to its revenue growth, cost management, strategic initiatives, and the broader market conditions it operates in.