CAVA Group, Inc. (CAVA)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 241,805 | 180,346 | 55,260 | 37,615 | 118,100 |
| Revenue | US$ in thousands | 963,713 | 728,700 | 564,119 | 500,072 | 931,800 |
| Gross profit margin | 25.09% | 24.75% | 9.80% | 7.52% | 12.67% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $241,805K ÷ $963,713K
= 25.09%
The gross profit margin of CAVA Group, Inc. exhibited significant fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the gross profit margin stood at 12.67%, indicating the proportion of revenue remaining after deducting the cost of goods sold (COGS). This margin experienced a marked decline in 2021, decreasing to 7.52%, which suggests an increase in COGS relative to revenue or potentially less favorable pricing strategies during that period.
In 2022, the gross profit margin showed a modest recovery to 9.80%, reflecting some improvement but still remaining notably below the 2020 level. The most substantial positive shift occurred between 2022 and 2023, where the margin surged to 24.75%, indicating a substantial enhancement in profitability at the gross level. This significant increase may be attributable to operational efficiencies, changes in product mix, improved pricing strategies, or cost control measures.
The margin further modestly increased in 2024 to 25.09%, suggesting the sustainability of the improved gross profitability and possibly continued favorable pricing dynamics or cost management. Overall, the trend highlights a notable improvement in gross profit margin from the lowest point in 2021 to the peak in 2024, reflecting a potential turnaround in gross profitability and operational performance over these years.
Peer comparison
Dec 31, 2024