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- **Revenue Growth**: 20% YoY to $289.8M, 1.9% same-restaurant sales, 20% 2-year stack growth.
- **Profit Margin Expansion**: 24.6% restaurant-level profit, up 150bps YoY.
- **New Initiatives**: Chicken shawarma launch success, salmon 2026, AGM program.
- **Operational Strength**: 24.6% margin, 100%+ AUVs, 20% GMs ready for promotion.
- **Macro Resilience**: 2-year stack growth 350bps, 34.1% 3-year growth.
- **Cash Flow**: $23.3M free cash flow, $40M EBITDA.
- **2026 Outlook**: 68-70 units, 3-4% same-restaurant sales.
- **Value Proposition**: Pricing <17% vs. industry 34%, 2025 COGS 30.1%.

**【CEO Summary Section】**
- Q3 revenue grew 20% YoY to $289.8 million, driven by 1.9% same-restaurant sales growth and 17 new openings, bringing total units to 415.
- 2-year same-restaurant sales accelerated 350bps to 20%, with 3-year growth at 34.1%.
- Introduced chicken shawarma, performing in line with market tests, and plans to launch salmon in late 2026.
- AGM program expanded to develop future leaders, with 20% of current GMs ready for promotion.
- Restaurant-level profit margin improved to 24.6%, up 150bps YoY, with AUVs above 100%.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $40 million (+19.6% YoY), GAAP net income $14.7 million, and free cash flow $23.3 million.
- Restaurant-level costs: COGS 30.1%, labor 25.5%, occupancy 6.7%, OPEX 13.1%.
- Preopening costs $4.9 million, up $2.1M YoY due to higher unit count and construction intensity.
- Full-year 2025 guidance: 68-70 new units, 3-4% same-restaurant sales growth, 24.4-24.8% restaurant margin.

**【Q&A Highlights】**
- Honeymoon effect on new units persists, but 2025 cohort AUVs >$3M.
- Salmon test results encouraging, planned 2026 launch.
- Consumer macro headwinds moderating traffic, but 2-year stack growth 350bps.
- AGM program adds modest labor cost, focuses on leadership pipeline.
- 2026 unit growth 16%, targeting low-single-digit same-restaurant sales.
- Pricing <17% vs. industry 34% increase, maintaining value proposition.

CAVA Group, Inc. (CAVA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CAVA

CAVA fundamentals

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