CAVA Group, Inc. (CAVA)

Operating 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
Operating income (ttm)	US$ in thousands	53,777	52,271	51,171	45,890	36,945	31,422	25,186	10,367	-659	-20,952	-29,671
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
Operating profit margin		5.19%	5.42%	5.60%	5.43%	4.71%	4.31%	3.70%	1.61%	-0.11%	-3.71%	-5.38%

March 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $53,777K ÷ $1,036,533K
= 5.19%

The operating profit margin of CAVA Group, Inc. has demonstrated a marked improvement over the analyzed period. Starting from a significant negative margin of -5.38% as of September 30, 2022, the company has progressively reduced its operating losses, moving toward profitability. By December 31, 2022, the operating margin improved to -3.71%, indicating a narrowing of losses. This positive trend continued, with the margin approaching break-even at -0.11% by March 31, 2023, suggesting that operating expenses and costs were nearly commensurate with revenue.

Moving into the subsequent quarters, the company transitioned into positive territory, with the operating profit margin reaching 1.61% by June 30, 2023. This shift into profitability indicates effective operational management and likely improvements in cost control, revenue growth, or a combination of both. The upward trajectory persisted through the following periods, with margins increasing to 3.70% as of September 30, 2023, and further to 4.31% by December 31, 2023. The momentum continued with margins reaching 4.71% by March 31, 2024, and subsequently climbing to 5.43% as of June 30, 2024.

By September 30, 2024, the operating profit margin had increased to 5.60%, reflecting sustained operational improvements and potentially increased efficiency or revenue expansion. Although there is a slight decline to 5.42% as of December 31, 2024, the margin remains robust, corroborating ongoing positive performance factors. Finally, as of March 31, 2025, the operating profit margin stands at approximately 5.19%, indicating that while there has been a marginal decrease from the previous quarter, the company continues to operate with a healthy profit margin.

Overall, the trend demonstrates a significant turnaround from a period of operating losses to consistent profitability, with margins stabilizing at a level indicative of efficient operations and favorable cost management. These developments suggest that CAVA Group, Inc. has successfully addressed prior operational challenges and is maintaining a steady, profitable business environment.