Management notes macro headwinds and a higher mix of third-party deliveries, leading to elevated operating expenses and margin pressure, but stresses resilience and the core growth story.

Q3 highlights include Adjusted EBITDA of $40 million (up about 19.6% year over year), GAAP net income of $14.7 million, diluted EPS of $0.12, and year-to-date free cash flow of $23.3 million; liquidity remains strong with $387.7 million in cash and investments and no debt, plus a $75 million undrawn revolver.

CAVA Group delivers solid revenue growth and acceleration in the US footprint, though same-store sales growth moderated to about 1.9% with a two-year SSS stack up 350 basis points to 20%.

Strategic investments include a Kitchen Display System rollout to at least 350 locations (with 200+ live), TurboChef ovens across all sites, and a 'Flavor Your Future' program to develop leaders, plus the Project Sole restaurant redesign and a new Salmon offering showing early positive tests for a potential 2026 rollout.

The company reports Q3 results with 17 net new restaurants bringing total to 415, and new-unit productivity exceeding 100% with AUV above $3 million for the 2025 cohort.

CEO highlights strategic focus on expanding Mediterranean cuisine footprint and market share, with a cautious full-year outlook from the CFO and leadership changes positioned for the next growth phase.

The loyalty program was relaunched with expanded tiers—Sea, Sand, and Sun—and status matching to deepen guest engagement, complemented by menu innovations like cinnamon-sugar pita chips to drive crossover visits.

Cost structure shows food, beverage, and packaging at 30.1% of revenue (up due to tariffs and chicken shawarma), labor at 25.5%, and other operating expenses at 13.1% (up 80 bps from 2024) driven by delivery mix and insurance; restaurant-level margin stands at 24.6%.

Guidance for 2025 calls for 68–70 net new restaurants, SSS growth of 3–4%, restaurant-level margins of 24.4–24.8%, pre-opening costs of $18–$19 million, and adjusted EBITDA of $148–$152 million; 2026 targets include 16%+ unit count growth and long-term low-to-mid single-digit SSS growth.