What drove CAVA's gross profit surge in Q3 2024?

CAVA's gross profit surge in Q3 2024 can be attributed to a combination of factors:

1. **Revenue Growth**: CAVA's revenue shot up by 35.2% in Q2 2024, reaching $231.4 million. This significant increase was driven by the opening of 78 net new restaurants during the quarter and a 14.4% growth in same-restaurant sales. The introduction of premium-priced items, such as grilled steak, also contributed to the revenue boost.
2. **Menu Price Increase**: CAVA raised menu prices by 3% in January 2024, which had a positive impact on revenue and gross profit margin.
3. **Product Mix**: The sale of salad bowls and pita wraps, which are higher-margin items, contributed to the revenue growth and improved profitability.
4. **Operational Efficiency**: The company's restaurant-level profit margin improved by 40 basis points to 26.5% in Q2 2024, primarily due to leverage from higher sales and favorable commodity costs. This efficiency gain likely carried over to Q3 2024, supporting the gross profit surge.
5. **Digital Sales Growth**: CAVA's digital sales accounted for 35.8% of the total revenue mix during the quarter ending on July 14, 2024. The growth of digital sales, which are often more profitable due to lower costs, has become a key driver of revenue and profitability.

In summary, CAVA's gross profit surge in Q3 2024 was driven by strong revenue growth, strategic menu price increases, effective product mix management, improved operational efficiency, and the successful integration of digital sales channels.