CAVA Group, Inc. Q4 FY2025 earnings call

Brett Schulman mentioned that 2025 was a milestone year with over 13,000 team members. In the fourth quarter, 24 net new restaurants were opened, and 72 net new restaurants were opened throughout the full year. The Project Soul design was launched for new restaurants. There was menu innovation such as bringing back the roasted white sweet potato, and introducing new offerings like Sumac Slaw, etc. The loyalty program had tiered status levels including the Oasis tier. The Flavor Your Future initiative was introduced, and the Assistant General Manager role was created. The kitchen display screen system and TurboChef ovens were rolled out, and Doug Thompson was set to join as COO in March

Fourth quarter highlights: CAVA revenue increased by 21.2% to $272.8 million, same - restaurant sales grew by 0.5%, restaurant - level profit margin was 21.4%, there were 24 net new restaurants, adjusted EBITDA was $25.8 million, and net income was $4.9 million. Full year highlights: CAVA revenue rose by 22.5%, same - restaurant sales were 4%, 72 net new restaurants were opened, ending the year with 439 restaurants, adjusted EBITDA was $152.8 million, net income was $63.7 million, and free cash flow was $26.1 million. Food, beverage, and packaging costs were 30.4% of revenue, labor and related costs were 27.1% of revenue, occupancy and related expenses were 7.6% of revenue, other operating expenses were 13.4% of revenue, and general and administrative expenses (excluding stock - based compensation) were 10.5% of revenue

For full year 2026, the outlook includes 74 - 76 net new CAVA restaurant openings, same - restaurant sales of 3% - 5%, restaurant - level profit margin between 23.7% and 24.2%, preopening costs between $19.5 million and $20 million, and adjusted EBITDA between $176 million and $184 million. It is expected that stock - based compensation will be between $22 million and $24 million in 2026, and the effective tax rate will be between 25% and 30%

Q: John Ivankoe inquired about same - store sales and new unit volumes.

A: Tricia Tolivar stated that same - restaurant sales are calculated on a full - year basis, and there was strong performance across different vintages, geographies, and income cohorts of restaurants.

Q: Sharon Zackfia asked about new unit productivity and comps deceleration.

A: Tricia Tolivar said the new restaurant productivity assumption was 90%, and the comps guidance reflected the long - term algorithm and macro uncertainty.

Q: Jake Bartlett questioned the restaurant level margin outlook.

A: Tricia Tolivar mentioned investments in the team and guests, with the salmon launch being a margin headwind but penny profit neutral, and modest labor investments.

Q: Sara Senatore asked about same - store sales drivers.

A: Tricia Tolivar said multiple initiatives contributed, and there was no single driver.

Q: Chris O'Cull asked about the media mix.

A: Tricia Tolivar said the media mix was being optimized, and brand awareness had increased.

Q: Andrew Charles asked about new store maturation and the salmon test.

A: Tricia Tolivar said new store performance was strong, and the salmon test results were better than those of Chicken Shawarma.

Q: Danilo Gargiulo asked about Project Soul.

A: Brett Schulman said Project Soul was in 100 locations, and there were improved aesthetic scores.

Q: David Tarantino asked about 2026 growth infrastructure.

A: Brett Schulman talked about the people development pipeline and infrastructure investments.

Q: Brian Harbour asked about COO operations priorities.

A: Brett Schulman mentioned people development, hospitality, and operational execution.

Q: Brian Mullan asked about catering.

A: Brett Schulman talked about catering testing and potential expansion.

Q: Logan Reich asked about Q1 to date performance.

A: Brett Schulman said outperformance was due to brand relevance and weather.

Q: Nick Setyan asked about the digital mix.

A: Brett Schulman said there was improved digital execution.

Q: Jeffrey Bernstein asked about the AGM.

A: Brett Schulman said the AGM had benefits and would be completed by the middle of the year.

Q: Hyun Jin Cho asked about the loyalty program.

A: Tricia Tolivar said there were encouraging results from the tiers.

Q: Dennis Geiger asked about menu innovation.

A: Brett Schulman talked about the menu philosophy with tent - pole and seasonal moments.

Q: Christopher Carroll asked about new restaurant performance.

A: Tricia Tolivar said there was strength across opening categories.

Q: Jacob Aiken - Phillips asked about throughput.

A: Brett Schulman said there was meaningful room to grow transactions.

Q: Todd Brooks asked about KDS.

A: Tricia Tolivar said there were improvements with KDS.

Q: Brian Vaccaro asked about loyalty.

A: Tricia Tolivar said loyalty drove 1/3 of sales, but no active user number was provided