CAVA Group, Inc. (CAVA)

Gross profit margin

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022
Gross profit (ttm)	US$ in thousands	246,769	210,750	186,845	157,157	143,252	132,913	118,272	130,459	112,396	84,016	75,071
Revenue (ttm)	US$ in thousands	1,036,533	963,713	913,488	845,224	784,623	728,700	681,465	645,170	608,191	564,119	551,350
Gross profit margin		23.81%	21.87%	20.45%	18.59%	18.26%	18.24%	17.36%	20.22%	18.48%	14.89%	13.62%

March 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $246,769K ÷ $1,036,533K
= 23.81%

The gross profit margin of CAVA Group, Inc. exhibits a notable upward trend over the analyzed period. Starting at 13.62% as of September 30, 2022, the margin experienced a gradual increase, reaching 14.89% by December 31, 2022. A more pronounced improvement occurred between December 2022 and March 31, 2023, when the gross profit margin rose to 18.48%, indicating enhanced efficiency in core operations or improved product margins. The upward trajectory continued into the June 30, 2023 quarter, with the margin reaching 20.22%, reflecting ongoing operational improvements or favorable pricing strategies.

Following a slight decline to 17.36% as of September 30, 2023, the margin rebounded in subsequent periods, reaching 18.24% by December 31, 2023, and maintaining a relatively stable level at 18.26% in the first quarter of 2024. The margin further increased to 18.59% by June 30, 2024, and continued its upward trend, achieving 20.45% by September 30, 2024. The positive momentum persisted, culminating in a projected gross profit margin of 21.87% as of December 31, 2024, and an estimated 23.81% in the quarter ending March 31, 2025.

This progression suggests that CAVA Group has been effective in improving its gross profitability over time. The initial increases could be attributed to better cost control, menu price adjustments, or a shift toward higher-margin products. The brief decline in late 2023 may reflect seasonality, input cost fluctuations, or strategic pricing adjustments, but the subsequent recovery indicates a resilient improvement trend. Overall, the company’s gross profit margin demonstrates sustained growth, reflecting continued operational improvements or favorable market conditions impacting its core offerings.