CAVA Group, Inc. (CAVA)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 130,319 | 13,280 | -58,987 | -37,391 | 60,800 |
| Revenue | US$ in thousands | 963,713 | 728,700 | 564,119 | 500,072 | 931,800 |
| Net profit margin | 13.52% | 1.82% | -10.46% | -7.48% | 6.53% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $130,319K ÷ $963,713K
= 13.52%
The net profit margin of CAVA Group, Inc. exhibits significant fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the company demonstrated a healthy profit margin of 6.53%, indicating effective cost management and strong profitability during that year.
However, by December 31, 2021, the net profit margin shifted to a negative figure of -7.48%, reflecting a period of losses that could be attributable to increased operating expenses, restructuring costs, or market challenges faced during that year. The negative margin further deteriorated by December 31, 2022, reaching -10.46%, which suggests that the company encountered ongoing difficulties impacting its profitability.
In 2023, there was a notable improvement as the net profit margin turned positive at 1.82%, indicating a turnaround and potential stabilization of operations. This improvement could be associated with strategic adjustments, cost control measures, or revenue growth initiatives.
By 2024, the net profit margin significantly advanced to 13.52%, marking a substantial recovery and a strong bottom-line performance. This upward trend implies enhanced operational efficiencies, increased profitability, and potentially favorable market conditions or successful business strategies that contributed to sustained profitability growth.
Overall, the company's net profit margin trajectory reflects a period of financial distress in 2021 and 2022, followed by a phased recovery culminating in a robust profit margin in 2024. This pattern underscores the importance of ongoing strategic and operational efforts to maintain and improve profitability levels.
Peer comparison
Dec 31, 2024