SEGMENT REPORTING

4 Months Ended

Apr. 20, 2025

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company’s operations are conducted as two operating segments: CAVA and CAVA Foods. CAVA includes the operations of all company-owned CAVA restaurants. CAVA Foods includes the production of dips and spreads used in CAVA restaurants as well as sales from the Company’s consumer-packaged goods (“CPG”) business. These segments were determined on the same basis that the Company’s Chief Executive Officer (“CEO”), who is the chief operating decision maker (“CODM”), manages, evaluates, and makes key decisions regarding the business. CAVA is the Company’s only reportable segment, as CAVA Foods is below the quantitative threshold for segment reporting purposes.

The CODM reviews segment performance and allocates resources based upon restaurant-level profit, which is defined as segment revenues less food, beverage, and packaging, labor, occupancy, and other operating expenses. Restaurant-level profit is used to measure the segment’s profitability as corporate-level expenses are excluded from such measure. The CODM uses restaurant-level profit for each segment in the annual budget to make decisions about the allocation of resources, with the monitoring of actual results to determine appropriate changes to such allocation. All segment revenue is earned in the United States, and all intersegment revenues have been eliminated. Intersegment revenues represent the sale, from CAVA Foods to CAVA, of dips and spreads used in CAVA restaurants. Sales from external customers are derived principally from sales of food, beverage, and CPG. The Company does not rely on any major customers as sources of sales. As the CODM does not review asset information by segment, assets are reported only on a consolidated basis. Other includes the Company’s CPG sales from CAVA Foods.

The following table presents financial information about the Company’s reportable segment and includes reconciliations of CAVA segment revenue and restaurant-level profit to the Company’s consolidated revenue and income before taxes for the periods indicated:

	Sixteen Weeks Ended
(in thousands)	April 20, 2025		April 21, 2024
Reportable segment revenue
CAVA	$	328,482	$	256,290
Reconciliation of reportable segment revenue to consolidated revenue:
Other revenue	3,344		2,716
Total consolidated revenue	331,826		259,006
Significant segment expenses
CAVA
Food, beverage, and packaging	96,224		72,195
Labor	84,562		66,513
Occupancy	24,408		20,422
Other operating expenses1	40,983		32,544
Total CAVA segment expenses	246,177		191,674
Reportable segment restaurant-level profit
CAVA	82,305		64,616
Reconciliation of total reportable segment restaurant-level profit to income before income taxes:
Other non-reportable segment profit	(1,758)		(750)
General and administrative expenses	41,394		33,840
Depreciation and amortization	20,811		17,322
Restructuring and other costs	—		282
Pre-opening costs	4,481		3,379
Impairment and asset disposal costs	1,667		1,290
Interest income, net	(4,617)		(4,914)
Other income, net	(27)		(78)
Income before taxes	$	20,354	$	14,245

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1    Other operating expenses, a significant segment expense, includes all other restaurant-level operating expenses, such as kitchen supplies, utilities, repairs and maintenance, travel costs, credit card and bank fees, recruiting, third-party delivery service fees, and marketing expenses.