CAVA Group Reports Strong Q1 2025 Growth

CAVA Group, Inc. ( (CAVA) ) has released its Q1 earnings. Here is a breakdown of the information CAVA Group, Inc. presented to its investors.

CAVA Group, Inc. is a leading Mediterranean fast-casual restaurant brand that offers healthful and flavorful food, competing in the limited-service restaurant sector and the health and wellness food category. The company has announced its financial results for the first quarter of 2025, showcasing significant growth despite economic challenges.

In the first quarter of 2025, CAVA Group reported a 28.2% increase in revenue, reaching $328.5 million. The company achieved a same restaurant sales growth of 10.8% and opened 15 new restaurants, expanding its presence to 26 states and the District of Columbia. The restaurant-level profit margin stood at 25.1%, and net income rose to $25.7 million, up from $14.0 million in the previous year.

Key financial metrics include an adjusted EBITDA of $44.9 million, a 34.6% increase from the prior year, and a digital revenue mix of 38.0%. The company’s average unit volume (AUV) increased to $2.9 million, and free cash flow was reported at $2.7 million. These results underscore CAVA’s robust performance and strategic expansion efforts.

Looking ahead, CAVA Group remains optimistic about its growth prospects, maintaining its guidance for net new restaurant openings and same restaurant sales growth for the full year 2025. The company continues to focus on expanding its footprint and enhancing its operational efficiency to capitalize on the growing demand for Mediterranean cuisine.