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5 Revealing Analyst Questions From CAVA's Q1 Earnings Call

5 Revealing Analyst Questions From CAVA's Q1 Earnings Call

Yahoo02-07-2025
CAVA's first quarter results outpaced Wall Street expectations, but the market responded negatively, reflecting investor caution. Management attributed top-line growth to robust same-store sales, driven mainly by increased guest traffic and new restaurant openings, with CEO Brett Schulman describing the brand's value proposition as 'where taste and health unite.' Notably, investments in menu innovation and loyalty program enhancements contributed to higher guest engagement. However, management acknowledged that food cost pressures—particularly from steak offerings—and a challenging macroeconomic backdrop were headwinds that required disciplined execution and operational improvements.
Is now the time to buy CAVA? Find out in our full research report (it's free).
Revenue: $331.8 million vs analyst estimates of $327.7 million (28.1% year-on-year growth, 1.2% beat)
EPS (GAAP): $0.22 vs analyst estimates of $0.13 (64.5% beat)
Adjusted EBITDA: $44.85 million vs analyst estimates of $43.85 million (13.5% margin, 2.3% beat)
EBITDA guidance for the full year is $155.5 million at the midpoint, below analyst estimates of $159.7 million
Operating Margin: 4.7%, up from 3.6% in the same quarter last year
Locations: 393 at quarter end, up from 334 in the same quarter last year
Same-Store Sales rose 10.8% year on year (2.3% in the same quarter last year)
Market Capitalization: $9.52 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Sharon Zackfia (William Blair) asked about the drivers of loyalty program engagement and the upcoming tiered structure. CEO Brett Schulman explained that lowering the entry reward hurdle and personalized offers contributed to higher participation, and detailed plans to further segment rewards by visit frequency.
Danilo Gargiulo (Bernstein) inquired about throughput improvements from the Kitchen Display System rollout. Schulman stated that while specific numbers are not disclosed, KDS enhances order management and accuracy, and broader rollout is expected to deliver further gains.
John Ivankoe (JPMorgan) questioned whether increased competition in existing markets was impacting performance. Schulman responded that CAVA has maintained strong average unit volumes across all regions, emphasizing that positive traffic growth is evidence of brand preference.
Andy Barish (Jefferies) sought clarity on future menu innovation, asking if additional protein launches are planned. Schulman confirmed a major new protein introduction is likely later in the year, following the stage-gate product development process.
Jeff Bernstein (Barclays) focused on restaurant margins and reinvestment priorities. CFO Tricia Tolivar explained that higher average unit volumes support strong margins, but the company is prioritizing reinvestment in team compensation and guest experience over aggressive price increases.
In upcoming quarters, the StockStory team will closely monitor (1) the rollout and impact of new loyalty program features, including tiered rewards, (2) the pace and performance of new restaurant openings—especially in newly entered markets, and (3) margin management as food cost pressures evolve. We will also track the effectiveness of operational initiatives such as the Kitchen Display System and labor deployment model in driving productivity and guest satisfaction.
CAVA currently trades at $82.50, down from $99.21 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free).
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
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This is where My Patriot Supply's approach stands out—offering gear that's not sold through fear, but through function. About My Patriot Supply Founded with a simple mission—help Americans become more self-reliant—My Patriot Supply has grown into a leading name in emergency readiness. The company offers practical solutions for food security, clean water access, backup power, and off-grid heating that are designed to serve real-world needs. Their philosophy is rooted in functionality over fear, providing tools that empower users to protect what matters without confusion or hype. The Survival Starter Plan reflects that mission. It's not just a product—it's a starting point for families, individuals, and communities who want to regain control in uncertain times. From compact emergency food kits to high-capacity solar generator systems, every item in the My Patriot Supply catalog is curated for simplicity, reliability, and peace of mind. With hundreds of thousands of customers served and more than 15,000 five-star reviews, My Patriot Supply has become a trusted resource for those who believe that preparation is a mindset—not a reaction. Their products are used by everyone from first-time preppers to seasoned homesteaders, proving that readiness is no longer a fringe concern—it's a national conversation. No panic. Just practical peace of mind—learn how the Survival Starter Plan can help you prepare confidently with My Patriot Supply. Contact My Patriot Supply Phone: 1- (866) 229-0927 Email: response@ Website: Disclaimer This press release is for informational purposes only. The content herein does not constitute financial, legal, or medical advice. The Survival Starter Plan by My Patriot Supply is not intended to diagnose, treat, predict, or guarantee any result or outcome. Individual experiences may vary, and outcomes are not assured. Some links in this release may be promotional in nature and may lead to third-party websites. The publisher or author may receive compensation through affiliate commissions if a purchase is made through these links. This compensation does not affect the price you pay and helps support continued research and content publication. All statements made about product features, platform strategies, or preparedness tools reflect publicly available information, user discussions, or historical trends, and are not endorsed or validated by regulatory bodies. Please perform your own research before making purchasing, technological, or lifestyle decisions. CONTACT: Email: response@ Phone: 1- (866) 229-0927

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