CAVA Group, Inc. (CAVA)

Pretax 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 66,019 59,910 54,883 43,845 30,396 14,048 -7,473 -26,266 -41,019 -58,894 -60,534
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
Pretax margin 6.37% 6.22% 6.01% 5.19% 3.87% 1.93% -1.10% -4.07% -6.74% -10.44% -10.98%

March 31, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $66,019K ÷ $1,036,533K
= 6.37%

The pretax margin of CAVA Group, Inc. exhibits a notable trend of gradual improvement over the reported periods. Starting from a significant negative value of -10.98% as of September 30, 2022, the margin shows a consistent upward trajectory, reducing the extent of losses over time. By December 31, 2022, it approaches -10.44%, indicating a slight narrowing of the negative margin. The downward pace of losses accelerates into 2023, with the margin moving from -6.74% at the end of March 2023 to -4.07% at the end of June 2023, reflecting operational improvements or cost management efforts.

A substantial turnaround becomes evident as the pretax margin crosses into positive territory by December 31, 2023, reaching 1.93%. This positive shift continues into 2024, with the margin advancing to 3.87% as of March 31, 2024, and further improving to 5.19% by June 30, 2024. The most recent data points show sustained positive margins, with values of 6.01% for September 30, 2024, and exceeding 6% thereafter, reaching 6.37% as of March 31, 2025.

Overall, the trend indicates a significant and consistent recovery from prior losses, reflecting improved profitability and operational efficiencies. The progression towards positive pretax margins suggests effective strategic adjustments and favorable business dynamics, culminating in actual profitability by the end of the observed period.