CAVA Group, Inc. (CAVA)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	1,228,360	1,169,670	1,079,540	1,038,540	1,005,090	1,060,830	984,974	970,375	674,506	654,435	654,435
Operating ROA		4.38%	4.47%	4.74%	4.42%	3.68%	2.96%	2.56%	1.07%	-0.10%	-3.20%	-4.53%

March 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $53,777K ÷ $1,228,360K
= 4.38%

The operating return on assets (ROA) of CAVA Group, Inc. demonstrates a notable upward trend over the analyzed period. Starting from a negative value of -4.53% as of September 30, 2022, the metric improved consistently, reflecting an initial reduction in operating inefficiencies or losses. By December 31, 2022, the operating ROA had narrowed to -3.20%, indicating progress toward operational positive returns.

The trajectory continued positively through March 31, 2023, with the operating ROA reaching just below breakeven at -0.10%. This near-zero figure signifies a substantial recovery in operating profitability. The subsequent quarters showed further enhancement: June 30, 2023, recorded a positive 1.07%, and by September 30, 2023, the operating ROA increased to 2.56%, marking the transition into consistent profitability.

The growth trend persisted into the fiscal year 2024, with the metric reaching 2.96% at the end of December 2023, then rising to 3.68% by March 31, 2024, and further advancing to 4.42% as of June 30, 2024. By September 30, 2024, it had achieved 4.74%, its highest point in the period analyzed. Slightly declining thereafter, the operating ROA stood at 4.47% on December 31, 2024, before a marginal decrease to 4.38% by March 31, 2025.

Overall, the progression of CAVA Group, Inc.'s operating ROA indicates a significant shift from operational losses toward sustainable operational profitability. The consistent increase from negative to positive territory, coupled with steady growth in subsequent quarters, suggests effective operational improvements, better asset utilization, or enhanced revenue-generating efficiency over time. The slight fluctuations in the later periods may reflect normal cyclical variations or adjustments in operational efficiencies but overall depict a positive long-term trend in the company's operational performance relative to its asset base.