CAVA Group, Inc. (CAVA)

Net 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
Net income (ttm)	US$ in thousands	142,033	130,319	53,749	42,616	29,414	13,280	-7,615	-26,341	-41,110	-58,987	-60,660
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
Net profit margin		13.70%	13.52%	5.88%	5.04%	3.75%	1.82%	-1.12%	-4.08%	-6.76%	-10.46%	-11.00%

March 31, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $142,033K ÷ $1,036,533K
= 13.70%

The net profit margin of CAVA Group, Inc. exhibits a significant positive trajectory over the analyzed period. Initially, as of September 30, 2022, the company reported a negative net profit margin of -11.00%, indicating unprofitable operations or substantial expenses exceeding revenues at that time. Throughout the subsequent quarters, there is a clear trend of progressive improvement. By December 31, 2022, the net profit margin slightly decreased in negativity to -10.46%, suggesting marginal enhancement but still indicating overall losses.

The most notable change begins after this point, with the margin moving toward profitability. By March 31, 2023, it decreased further to -6.76%, reflecting ongoing operational improvements. The trend continues positively through June 30, 2023, with the net profit margin narrowing to -4.08%, and it approaches breakeven by September 30, 2023, at -1.12%. This rapid improvement suggests that the company’s initiatives to reduce costs or increase revenues are beginning to yield results.

Turning to the transition into profitability, a substantial turnaround occurs by December 31, 2023, when the net profit margin turns positive at 1.82%. The upward momentum persists into the next quarters, with margins reaching 3.75% on March 31, 2024, and further increasing to 5.04% on June 30, 2024. By September 30, 2024, the margin advances to 5.88%, indicative of sustained operational efficiency and revenue growth.

The upward trend continues robustly into the subsequent year, with the net profit margin reaching 13.52% by December 31, 2024, and slightly increasing to 13.70% by March 31, 2025. This demonstrates that the company has transitioned from losses to a healthy profit margin, reflecting effective cost management and revenue expansion. Overall, the data highlights a significant recovery and consistent improvement in profitability, signaling a positive financial trajectory for CAVA Group, Inc. over the analyzed period.