CAVA Group: Are The Recently Enhanced Restaurant-Level Profit Margins Here To Stay?

CAVA Group, a fast-casual Mediterranean restaurant chain, reported strong financial performance for the fourth quarter and full year 2024. The company’s revenue increased significantly, driven by a 36.8% rise in CAVA revenue and 21.2% same-restaurant sales growth, primarily attributed to a jump in traffic by 15.6%. CAVA’s overall financial health appears solid, with an 18.8% year-over-year increase in adjusted EBITDA, indicating effective cost management and operational efficiency.