Q4 2025 Cava Group Inc Earnings Call

February 24, 2026

Operator: Good afternoon, ladies and gentlemen, and welcome to the CAVA Q4 and full year 2025 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press *0 for the operator. This call is being recorded on Tuesday, 24 February 2026. I would now like to turn the conference over to Matt Milanovich, Senior Vice President, Finance. Please go ahead.

Speaker #1: Good afternoon, ladies and gentlemen, and welcome to the CAVA Q4 and full year 2025 earnings conference call. At this time, online start and listen-only mode.

Speaker #1: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star 0 for the operator.

Speaker #1: This call is being recorded on Tuesday, February 24, 2026. I would now like to turn the conference over to Matt Milanovich, SVP Finance. Please go ahead.

Matt Milanovich: Good afternoon, welcome to CAVA's Q4 and full year 2025 Financial Results Conference Call. Before we begin, if you do not already have a copy, the earnings release and related 8-K furnished to the SEC are available on our website at investor.cava.com. The purpose of this conference call is to give investors further details regarding the company's financial results, as well as a general update on the company's progress. You will find reconciliations of any non-GAAP financial measure discussed on today's call to the most directly comparable financial measure calculated in accordance with GAAP, to the extent available, without unreasonable efforts in today's earnings release and supplemental deck, each of which is posted on the company's website. Before we begin, let me remind everyone that this call will contain forward-looking statements.

Speaker #2: Good afternoon and welcome to CAVA's fourth quarter and full year 2025 financial results conference call. Before we begin, if you do not already have a copy, the earnings release and related 8K furnished to the SEC are available on our website at investor.cava.com.

Speaker #2: The purpose of this conference call is to give investors further details regarding the company's financial results as well as a general update on the company's progress.

Speaker #2: You will find reconciliations of any non-GAAP financial measure discussed on today's call to most directly comparable financial measure calculated in accordance with GAAP to the extent available without unreasonable efforts in today's earnings release and supplemental deck, each of which is posted on the company's website.

Speaker #2: Before we begin, let me remind everyone that this call will contain forward-looking statements. For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements.

Matt Milanovich: For this purpose, any statements made during this call that are not statements of historical fact may be deemed to be forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in CAVA's most recent annual report on Form 10-K. That may be updated by its reports on Form 10-Q and other filings with the SEC. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today, and except as required by law, CAVA undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise.

Speaker #2: Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today.

Speaker #2: These risk factors are explained in detail in CAVA's most recent annual report on Form 10-K that may be updated by its reports on Form 10-Q and other filings with the SEC.

Speaker #2: Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today and accept as required by law.

Speaker #2: CAVA undertakes no obligation to publicly update or revise any forward-looking statements. Whether as a result of new information, future developments, or otherwise. And now I'll turn the call over to the company's co-founder and CEO, Brett Schulman.

Matt Milanovich: Now I'll turn the call over to the company's Co-founder and CEO, Brett Schulman.

Speaker #3: Thanks, Matt. And welcome to the call, everyone. 2025 was a milestone year for CAVA. Made possible by more than 13,000 team members who deliver on our mission of bringing heart, health, and humanity to food every day.

Brett Schulman: Thanks, Matt. Welcome to the call, everyone. 2025 was a milestone year for CAVA, made possible by more than 13,000 team members who deliver on our mission of bringing heart, health, and humanity to food every day. Before diving into the quarter and fiscal year, I want to thank our teams for their commitment to our guests and to one another. Their dedication is what continues to fuel our growth and made this another successful year at CAVA. In 2025, we continued to build with intention, strengthening our position as the clear leader of the Mediterranean category, guided by an unwavering long-term strategic focus. It was a record-setting year marked by our first full fiscal year, surpassing $1 billion in revenue and our strongest new restaurant opening class to date.

Speaker #3: Before diving into the quarter and fiscal year, I want to thank our teams for their commitment to our guests and to one another. Their dedication is what continues to fuel our growth and made this another successful year at CAVA.

Speaker #3: In 2025, we continue to build with intention, strengthening our position as the clear leader of the Mediterranean category, guided by an unwavering, long-term strategic focus.

Speaker #3: It was a record-setting year, marked by our first full fiscal year surpassing $1 billion in revenue and our strongest new restaurant opening class to date.

Speaker #3: The year also marked a transition point, shifting from a newly public company to a large-scale, sustainable growth enterprise as the model we've been building began to grow more broadly with strong new restaurant performance translating into meaningful market share gains.

Brett Schulman: The year also marked a transition point, shifting from a newly public company to a large-scale, sustainable growth enterprise as the model we've been building began to grow more broadly, with strong new restaurant performance translating into meaningful market share gains. We believe our momentum reflects more than just expansion. It signals that our value proposition is resonating with today's increasingly discerning consumer. As guests become more intentional with their spend, they are choosing brands like CAVA that deliver real differentiation through bold flavors, healthful food, and hospitality that creates meaningful human connection. Our Q4 highlights include a 21.2% increase in CAVA revenue and a 55.5% increase over the last two years.

Speaker #3: We believe our momentum reflects more than just expansion. It signals that our value proposition is resonating with today's increasingly discerning consumer. As guests become more intentional with their spend, they are choosing brands like CAVA that deliver real differentiation through bold flavors, healthful food, and hospitality that creates meaningful human connection.

Speaker #3: Our fourth-quarter highlights include a 21.2% increase in CAVA revenue and a 55.5% increase over the last two years. Same restaurant sales of 0.5%. Restaurant-level profit margin of 21.4%.

Brett Schulman: Same-restaurant sales of 0.5%, restaurant-level profit margin of 21.4%, 24 net new restaurants, adjusted EBITDA of $25.8 million, and net income of $4.9 million. Full year highlights include a 22.5% increase in CAVA revenue and a 63.1% increase over the last two years. Same-restaurant sales of 4%, 72 net new restaurants, ending the year with 439 restaurants, a 19.6% increase year-over-year, adjusted EBITDA of $152.8 million, a 21% increase over the full year of 2024, net income of $63.7 million, and $26.1 million in free cash flow.

Speaker #3: 24 net new restaurants. Adjusted EBITDA of 25.8 million. And net income of $4.9 million. In full-year highlights include a 22.5% increase in CAVA revenue and a 63.1% increase over the last two years.

Speaker #3: Same restaurant sales of 4%. 72 net new restaurants ending the year with 439 restaurants. A 19.6% increase year over year. Adjusted EBITDA of 152.8 million.

Speaker #3: A 21% increase over the full year 2024. Net income of 63.7 million. And 26.1 million in free cash flow. Just last month, we celebrated our 15-year anniversary.

Brett Schulman: Just last month, we celebrated our 15-year anniversary. When my co-founders and I started this business, our ambitions were simple: to make Mediterranean cuisine accessible to communities across the country, deliver it with genuine hospitality, and create a platform where our team members could build a career, not just have employment. That simple but powerful idea continues to shape our culture and how we serve our guests and support our teams every day. As we enter this next chapter of growth, I'm excited to welcome Doug Thompson as our new Chief Operations Officer, whose operational leadership will help us scale thoughtfully and sustainably. With our growth comes an even greater focus on the choices we make for our guests. Today's industry environment is dominated by price discounting, a reflection of many brands who aggressively raised prices in recent years.

Speaker #3: And when my co-founders and I started this business, our ambitions were simple. To make Mediterranean cuisine accessible to communities across the country, deliver it with genuine hospitality, and create a platform where our team members could build a career not just have employment.

Speaker #3: That simple but powerful idea continues to shape our culture and how we serve our guests and support our teams every day. As we enter this next chapter of growth, I'm excited to welcome Doug Thompson as our new Chief Operations Officer.

Speaker #3: Whose operational leadership will help us scale thoughtfully and sustainably. With our growth comes an even greater focus on the choices we make for our guests.

Speaker #3: Today's industry environment is dominated by price discounting—a reflection of many brands who aggressively raised prices in recent years. We believe it's more important than ever to deliver real value every day and exceptional experiences.

Brett Schulman: We believe it's more important than ever to deliver real value every day and exceptional experiences. In recent years, we've taken less than half the price increases of industry peers, while underpricing CPI by over 10%. It's these intentional decisions, made consistently over time, that reinforce trust with our guests and strengthen the long-term foundation of our brand. That foundation comes to life through our four strategic pillars. Starting with our first pillar: expand our Mediterranean way in communities across the country. During Q4, we opened 24 net new restaurants, ending the year with 439 locations across 28 states and the District of Columbia. 2025 was a strong year for expansion. We're excited to continue that momentum in 2026 with upcoming new market entries across the Midwest, including Cincinnati, St. Louis, Columbus, and Minneapolis.

Speaker #3: In recent years, we've taken less than half the price increases of industry peers while underpricing CPI by over 10%. It's these intentional decisions made consistently over time that reinforce trust with our guests and strengthen the long-term foundation of our brand.

Speaker #3: And that foundation comes to life through our four strategic pillars. Starting with our first pillar, expand our Mediterranean way in communities across the country.

Speaker #3: During the fourth quarter, we opened 24 net new restaurants ending the year with 439 locations across 28 states and the District of Columbia. 2025 was a strong year for expansion, and we're excited to continue that momentum in 2026 with upcoming new market entries across the Midwest including Cincinnati, St.

Speaker #3: Louis, Columbus, and Minneapolis. All new restaurants will open with the full project soul design as we remain on track toward our next milestone of at least 1,000 restaurants by 2032.

Brett Schulman: All new restaurants will open with the full Project Soul design, as we remain on track toward our next milestone of at least 1,000 restaurants by 2032. As we bring our Mediterranean way to more communities, our food remains at the heart of how our guests experience our brand. With the new year just beginning and many guests leaning into healthier choices, we're meeting that moment with menu innovation rooted in both flavor and purpose. Our most recent culinary launch, our largest update yet, brings back the fan-favorite and deliciously creamy roasted white sweet potato and introduces new offerings such as Sumac Slaw, Power Greens, Tangerine Aleppo juice, and Sumac Sour Cream and Onion Pita Chips. By leaning into spices like coriander, paprika, sumac, and Aleppo-style pepper, we're delivering bold, satisfying, high-quality food that feels both authentic and deeply craveable.

Speaker #3: As we bring our Mediterranean way to more communities, our food remains at the heart of how our guests experience our brand. With the new year just beginning and many guests leaning into healthier choices, we're meeting that moment with menu innovation rooted in both flavor and purpose.

Speaker #3: Our most recent culinary launch, our largest update yet, brings back the fan-favorite and deliciously creamy roasted white sweet potato. And introduces new offerings such as Sumac slaw, power greens, tangerine Aleppo juice, and Sumac sour cream and onion pita chips.

Speaker #3: By leaning into spices like coriander, paprika, sumac, and Aleppo-style pepper, we're delivering bold, satisfying, high-quality food that feels both authentic and deeply cravable. That same focus on health and balance carries directly into our next major culinary moment.

Brett Schulman: That same focus on health and balance carries directly into our next major culinary moment. I'm excited to share that towards the end of Q1, we'll be launching Pomegranate-glazed salmon, our first-ever seafood offering and a natural extension of our menu. Salmon fits seamlessly into the Mediterranean diet and naturally expands the variety of choices we can offer our guests, inviting even more people to our CAVA table. Our roasted, flaky filet is marinated in a subtly sweet blend of pomegranate, harissa, red wine vinegar, and bold spices. As we prepared for this upcoming launch, we've taken a thoughtful and disciplined approach to testing to ensure a great guest and team member experience. We're excited to bring this to life in the coming months and can't wait for our guests to experience it. Shifting to our second pillar, deepen personal relationships with guests, even as we scale.

Speaker #3: I'm excited to share that towards the end of the first quarter, we'll be launching pomegranate glazed salmon. Our first-ever seafood offering and a natural extension of our menu.

Speaker #3: Salmon fits seamlessly into the Mediterranean diet and naturally expands the variety of choices we can offer our guests. Inviting even more people to our CAVA table.

Speaker #3: Our roasted, flaky filet is marinated in a subtly sweet blend of pomegranate, harissa, red wine vinegar, and bold spices. As we prepared for this upcoming launch, we've taken a thoughtful and disciplined approach to testing to ensure a great guest and team member experience.

Speaker #3: We're excited to bring this to life in the coming months and can't wait for our guests to experience it. Shifting to our second pillar, deepened personal relationships with guests, even as we scale.

Speaker #3: This past fall, we rolled out tiered status levels as the next phase of our loyalty program. Through this evolution, we've been able to deliver differentiated benefits, surprise and delight moments, and recognition through our sea, sand, and sun tiers.

Brett Schulman: This past fall, we rolled out tiered status levels as the next phase of our loyalty program. Through this evolution, we've been able to deliver differentiated benefits, surprise and delight moments, and recognition through our sea, sand, and sun tiers. While still early, the introduction of these tiers has already strengthened engagement and created new, personalized ways for guests to connect with our brand. Building on that foundation, we recently introduced Oasis, our invite-only tier designed to recognize our most loyal guests and strengthen long-term relationships. Oasis gives our most engaged members access to enhanced earning opportunities, additional perks, exclusive merchandise, and special events throughout the year. This tier is another example of how we will utilize our new loyalty architecture to lean in to more tailored and personalized guest experiences over time.

Speaker #3: While still early, the introduction of these tiers has already strengthened engagement and created new, personalized ways for guests to connect with our brand. Building on that foundation, we recently introduced Oasis, our invite-only tier designed to recognize our most loyal guests and strengthen long-term relationships.

Speaker #3: Oasis gives our most engaged members access to enhanced earning opportunities. Additional perks, exclusive merchandise, and special events throughout the year. This tier is another example of how we will utilize our new loyalty architecture to lean into more tailored and personalized guest experiences over time.

Speaker #3: As we deepen our relationships with our guests, delivering on that promise requires a clear focus on our third pillar, running great restaurants every location every shift.

Brett Schulman: As we deepen our relationships with our guests, delivering on that promise requires a clear focus on our third pillar: running great restaurants, every location, every shift. Our team members remain at the core of our business, and enabling them with the right tools and technology is essential to delivering great guest experiences every day. A strong operational foundation allows us to consistently elevate hospitality, improve order accuracy, and enhance speed and service across our restaurants. Over the past year, we've continued to invest in technology that simplifies execution and makes our restaurants easier to run, including the rollout of our kitchen display screen system. In 2025, we completed all scheduled retrofits and opened every new restaurant with the new system, ending the year with our KDS live in 370 locations, with the remaining 69 retrofits to be completed this year.

Speaker #3: Our team members remain at the core of our business and enabling them with the right tools and technology is essential to delivering great guest experiences every day.

Speaker #3: A strong operational foundation allows us to consistently elevate hospitality, improve order accuracy, and enhance speed and service across our restaurants. Over the past year, we've continued to invest in technology that simplifies execution and makes our restaurants easier to run.

Speaker #3: Including the rollout of our kitchen display screen system. In 2025, we completed all scheduled retrofits and opened every new restaurant with the new system.

Speaker #3: Ending the year with our KDS live in 370 locations with the remaining 69 retrofits to be completed this year. This was a meaningful cross-functional effort driven by a shared focus on supporting operators, and improving the day-to-day restaurant experience.

Brett Schulman: This was a meaningful cross-functional effort driven by a shared focus on supporting operators and improving the day-to-day restaurant experience. In that same spirit, we've completed the rollout of TurboChef ovens across our entire restaurant base, giving team members the equipment they need to execute consistently as our menu continues to evolve. These ovens have already played an important role in delivering the quality and consistency guests expect, including our recent white sweet potato launch, and they will be a key enabler of our upcoming salmon launch. By simplifying execution and delivering faster, more consistent cook quality, these ovens help ensure our culinary innovation shows up in restaurants with the same integrity and care we design it with. As we continue to focus on running great restaurants, every location, every shift, leadership in our restaurants matters more than ever.

Speaker #3: In that same spirit, we've completed the rollout of TurboChef ovens across our entire restaurant base, giving team members the equipment they need to execute consistently as our menu continues to evolve.

Speaker #3: These ovens have already played an important role in delivering the quality and consistency guests expect, including our recent white sweet potato launch. And they will be a key enabler of our upcoming salmon launch.

Speaker #3: By simplifying execution and delivering faster, more consistent cook quality, these ovens help ensure our culinary innovation shows up in restaurants with the same integrity and care we design it with.

Speaker #3: As we continue to focus on running great restaurants every location every shift, leadership in our restaurants matters more than ever. As I noted earlier, Doug Thompson will be joining CAVA as our Chief Operations Officer this March.

Brett Schulman: As I noted earlier, Doug Thompson will be joining Cava as our Chief Operations Officer this March. Doug brings deep experience developing and mentoring restaurant leaders, building durable talent pipelines, and creating environments where people can grow careers, not just hold roles. His leadership philosophy is closely aligned with our belief that great restaurants are built by great people, we couldn't be more excited for him to partner with our teams as we enter our next phase of growth. Doug's arrival builds upon the foundation that we started last October, when we launched our Flavor Your Future initiative, a holistic team member development program designed to attract, develop, and retain Cava's next generation of leaders. One of our first actions under this program was the introduction of the assistant general manager role, created to build a deeper bench of role-ready leaders as we continue to scale.

Speaker #3: Doug brings deep experience developing and mentoring restaurant leaders, building durable talent pipelines, and creating environments where people can grow careers, not just hold roles.

Speaker #3: His leadership philosophy is closely aligned with our belief that great restaurants are built by great people. And we couldn't be more excited for him to partner with our teams as we enter our next phase of growth.

Speaker #3: Doug's arrival builds upon the foundation that we started last October, when we launched our Flavor Your Future initiative—a holistic team member development program designed to attract, develop, and retain CAVA's next generation of leaders.

Speaker #3: One of our first actions under this program was the introduction of the Assistant General Manager role. Created to build a deeper bench of role-ready leaders as we continue to scale.

Speaker #3: Today, we are on schedule with 60% of AGM roles filled, and a majority of them coming from internal promotions. While still early, we're seeing encouraging signs that this approach is having a positive impact.

Brett Schulman: Today, we are on schedule with 60% of AGM roles filled, and a majority of them coming from internal promotions. While still early, we're seeing encouraging signs that this approach is having a positive impact. Restaurants with AGM coverage are outperforming those without, as AGMs provide additional leadership support during peak dinner and weekend shifts, helping to strengthen execution across every shift, develop future team members, and create more sustainable restaurant teams. In addition to the AGM role, given our dynamic new restaurant growth, we are making deliberate changes to our field leadership model to support operator development and elevate standards as we scale. First, we introduced 2 zone leaders who will be reporting directly to Doug, splitting the country to increase focus, accountability, and leadership proximity to restaurants.

Speaker #3: Restaurants with AGM coverage are outperforming those without. As AGMs provide additional leadership support during peak dinner and weekend shifts, helping to strengthen execution across every shift, develop future team members, and create more sustainable restaurant teams.

Speaker #3: In addition to the AGM role, given our dynamic new restaurant growth, we are making deliberate changes to our field leadership model to support operator development and elevate standards as we scale.

Speaker #3: First, we introduced two-zone leaders who will be reporting directly to Doug. Splitting the country to increase focus, accountability, and leadership proximity to restaurants. Second, we narrowed spans of control for our regional leaders enabling deeper restaurant engagement and more consistent coaching in the field.

Brett Schulman: Second, we narrowed spans of control for our regional leaders, enabling deeper restaurant engagement and more consistent coaching in the field. Finally, we added a new market leader role to create a clear span breaker between regional and area leaders, strengthening day-to-day support and execution at the local level. Together, these changes increase in-restaurant leadership presence, reinforce hospitality, and build the leadership pipeline needed to support long-term sustainable growth. As we look ahead, we'll continue to scale with purpose, staying grounded in our mission while building a business designed to endure for the long term. The strength of what we've put in place gives us confidence in the path forward. None of this would be possible without the dedication and trust of our team members across the field and support centers.

Speaker #3: And finally, we added a new market leader role to create a clear span breaker between regional and area leaders, strengthening day-to-day support and execution at the local level.

Speaker #3: Together, these changes increase in-restaurant leadership presence, reinforce hospitality, and build the leadership pipeline needed to support long-term, sustainable growth. As we look ahead, we'll continue to scale with purpose, staying grounded in our mission while building a business designed to endure for the long term.

Speaker #3: The strength of what we've put in place gives us confidence in the path forward. And none of this would be possible without the dedication and trust of our team members across the field and support centers.

Speaker #3: Thank you to our teams, and to all of you who continue to believe in our mission and the growth we're creating together. And with that, I'll turn it over to Tricia to walk you through the financials.

Brett Schulman: Thank you to our teams and to all of you who continue to believe in our mission and the growth we're creating together. With that, I'll turn it over to Tricia to walk you through the financials.

Speaker #1: Thanks, Brett. And hello, everyone. CAVA revenue in the fourth quarter of 2025 grew 21.2% year over year to $272.8 million. During the quarter, we opened 24 net new restaurants, bringing our total CAVA restaurant count to 439.

[Company Representative] (CAVA Group): Thanks, Brett, hello, everyone. CAVA revenue in the Q4 of 2025 grew 21.2% year-over-year to $272.8 million. During the quarter, we opened 24 net new restaurants, bringing our total CAVA restaurant count to 439. Same-restaurant sales increased 0.5%. On a 2-year basis, same-restaurant sales accelerated 170 basis points to 21.7%. On a 3-year basis, same-restaurant sales remained relatively stable at 33.1%. Our unit economic model continues to be strong, we remain confident in the underlying structural strength of the business. We had a record-setting year, with our new restaurant productivity remaining above 100% and our 2025 NRO AUVs trending above $3 million, underscoring the resonance of our brand.

Tricia Tolivar: Thanks, Brett, hello, everyone. CAVA revenue in the Q4 of 2025 grew 21.2% year-over-year to $272.8 million. During the quarter, we opened 24 net new restaurants, bringing our total CAVA restaurant count to 439. Same-restaurant sales increased 0.5%. On a 2-year basis, same-restaurant sales accelerated 170 basis points to 21.7%. On a 3-year basis, same-restaurant sales remained relatively stable at 33.1%. Our unit economic model continues to be strong, we remain confident in the underlying structural strength of the business. We had a record-setting year, with our new restaurant productivity remaining above 100% and our 2025 NRO AUVs trending above $3 million, underscoring the resonance of our brand.

Speaker #1: Same-restaurant sales increased 0.5% on a two-year basis. Same-restaurant sales accelerated 170 basis points to 21.7%. On a three-year basis, same-restaurant sales remained relatively stable at 33.1%.

Speaker #1: Our unit economic model continues to be strong and we remain confident in the underlying structural strength of the business. We had a record-setting year with our new restaurant productivity remaining above 100% and our 2025 NRO AUVs trending above $3 million.

Speaker #1: Underscoring the resonance of our brand. CAVA restaurant level profit in the fourth quarter was $58.3 million versus $50.4 million in the fourth quarter of 2024, representing 15.7% growth.

[Company Representative] (CAVA Group): CAVA restaurant-level profit in Q4 was $58.3 million, versus $50.4 million in Q4 2024, representing 15.7% growth. CAVA's food, beverage, and packaging costs were 30.4% of revenue, a 50 basis point increase from Q4 2024. This increase reflects tariffs and our limited-time only Chicken Shawarma offering. CAVA labor and related costs were 27.1% of revenue, a decrease of approximately 20 basis points from Q4 2024. This decrease reflects leverage from increased sales, partially offset by an investment in team member wages of 1.5%. CAVA occupancy and related expenses were 7.6% of revenue, flat with Q4 2024.

Tricia Tolivar: CAVA restaurant-level profit in Q4 was $58.3 million, versus $50.4 million in Q4 2024, representing 15.7% growth. CAVA's food, beverage, and packaging costs were 30.4% of revenue, a 50 basis point increase from Q4 2024. This increase reflects tariffs and our limited-time only Chicken Shawarma offering. CAVA labor and related costs were 27.1% of revenue, a decrease of approximately 20 basis points from Q4 2024. This decrease reflects leverage from increased sales, partially offset by an investment in team member wages of 1.5%. CAVA occupancy and related expenses were 7.6% of revenue, flat with Q4 2024.

Speaker #1: CAVA's food, beverage, and packaging costs were $30.4% of revenue, a 50 basis point increase from the fourth quarter of 2024. This increase reflects tariffs and our limited time-only chicken shawarma offering.

Speaker #1: CAVA labor and related costs were $27.1% of revenue, a decrease of approximately 20 basis points from the fourth quarter of 2024. This decrease reflects leverage from increased sales, partially offset by an investment in team member wages of $1.5%.

Speaker #1: CAVA occupancy and related expenses were $7.6% of revenue, flat with the fourth quarter of 2024. CAVA other operating expenses were $13.4% of revenue, reflecting an increase of 60 basis points from the fourth quarter of 2024.

[Company Representative] (CAVA Group): CAVA other operating expenses were 13.4% of revenue, reflecting an increase of 60 basis points from Q4 of 2024. This increase was due to a higher mix of third-party delivery and ongoing technology costs associated with our KDS rollout. Shifting to overall performance, our general and administrative expenses for the quarter, excluding stock-based compensation, was 10.5% of revenue, compared with 10.4% of revenue in Q4 of 2024. This 10 basis point increase was primarily due to investments to support future growth, partially offset by leverage from higher sales. Pre-opening expenses were $4.6 million in the current quarter, compared with $2.7 million in the prior year quarter. The $1.9 million increase includes a higher number of units under construction and increased costs on a per-unit basis.

Tricia Tolivar: CAVA other operating expenses were 13.4% of revenue, reflecting an increase of 60 basis points from Q4 of 2024. This increase was due to a higher mix of third-party delivery and ongoing technology costs associated with our KDS rollout. Shifting to overall performance, our general and administrative expenses for the quarter, excluding stock-based compensation, was 10.5% of revenue, compared with 10.4% of revenue in Q4 of 2024. This 10 basis point increase was primarily due to investments to support future growth, partially offset by leverage from higher sales. Pre-opening expenses were $4.6 million in the current quarter, compared with $2.7 million in the prior year quarter. The $1.9 million increase includes a higher number of units under construction and increased costs on a per-unit basis.

Speaker #1: This increase was due to a higher mix of third-party delivery and ongoing technology costs associated with our kitchen display system rollout. Shifting to overall performance, our general and administrative expenses for the quarter, excluding stock-based compensation, were 10.5% of revenue, compared with 10.4% of revenue in Q4 2024.

Speaker #1: This 10 basis point increase was primarily due to investments to support future growth, partially offset by leverage from higher sales. Pre-opening expenses were $4.6 million in the current quarter, compared with $2.7 million in the prior year quarter.

Speaker #1: The $1.9 million increase includes a higher number of units under construction, an increased cost on a per-unit basis. Adjusted EBITDA for the fourth quarter was $25.8 million, a 2.6% increase versus Q4 of 2024.

[Company Representative] (CAVA Group): Adjusted EBITDA for Q4 was $25.8 million, a 2.6% increase versus Q4 of 2024. The increase in Adjusted EBITDA was primarily driven by the number and continued strength of new restaurant openings, partially offset by investments to support growth, including higher pre-opening costs. For full year 2025, equity-based compensation was $18.1 million. In 2026, we expect stock-based compensation to be between $22 million and 24 million, which includes our new program to provide equity grants to general managers. In 2026, we plan to adopt a performance-based LTI program, which would transition from a four to three-year vesting period, accelerating expense recognition without changing total equity granted.

Tricia Tolivar: Adjusted EBITDA for Q4 was $25.8 million, a 2.6% increase versus Q4 of 2024. The increase in Adjusted EBITDA was primarily driven by the number and continued strength of new restaurant openings, partially offset by investments to support growth, including higher pre-opening costs. For full year 2025, equity-based compensation was $18.1 million. In 2026, we expect stock-based compensation to be between $22 million and 24 million, which includes our new program to provide equity grants to general managers. In 2026, we plan to adopt a performance-based LTI program, which would transition from a four to three-year vesting period, accelerating expense recognition without changing total equity granted.

Speaker #1: The increase in adjusted EBITDA was primarily driven by the number and continued strength of new restaurant openings, partially offset by investments to support growth, including higher pre-opening costs.

Speaker #1: For full-year 2025, equity-based compensation was $18.1 million. In 2026, we expect stock-based compensation to be between $22 million and $24 million, which includes our new program to provide equity grants to general managers.

Speaker #1: In 2026, we plan to adopt a performance-based LTI program, which would transition from a four- to three-year vesting period, accelerating expense recognition without changing total equity granted.

Speaker #1: Approximately 55% of this expense will be recognized in the first half of the year given the timing of payroll taxes associated with RSU vestings and the extra period in Q1.

[Company Representative] (CAVA Group): Approximately 55% of this expense will be recognized in the first half of the year, given the timing of payroll taxes associated with RSU vesting and the extra period in Q1. In 2025, our effective tax rate was 10%. For the full fiscal year 2026, we expect our effective tax rate to be between 25% and 30%, with a slightly lower rate in the first half of the year versus the back half, due to the timing of equity-based vesting. This increase for the year is due to the anticipated lower permanent benefit from equity-based compensation. As a reminder, our cash taxes will continue to be immaterial until we fully utilize our net operating losses.

Tricia Tolivar: Approximately 55% of this expense will be recognized in the first half of the year, given the timing of payroll taxes associated with RSU vesting and the extra period in Q1. In 2025, our effective tax rate was 10%. For the full fiscal year 2026, we expect our effective tax rate to be between 25% and 30%, with a slightly lower rate in the first half of the year versus the back half, due to the timing of equity-based vesting. This increase for the year is due to the anticipated lower permanent benefit from equity-based compensation. As a reminder, our cash taxes will continue to be immaterial until we fully utilize our net operating losses.

Speaker #1: In 2025, our effective tax rate was 10%. For the full fiscal year 2026, we expect our effective tax rate to be between 25 and 30 percent, with a slightly lower rate in the first half of the year versus the back half due to the timing of equity-based vestings.

Speaker #1: This increase for the year is due to the anticipated lower permanent benefit from equity-based compensation. As a reminder, our cash taxes will continue to be immaterial until we fully utilize our net operating losses.

Speaker #1: For the full fiscal year, we reported gap net income of $63.7 million compared to adjusted net income of $50.2 million in the prior year, an increase of 26.9% due to higher operating performance and lower taxes, partially offset by higher depreciation and amortization.

[Company Representative] (CAVA Group): For the full fiscal year, we reported GAAP net income of $63.7 million, compared to adjusted net income of $50.2 million in the prior year, an increase of 26.9% due to higher operating performance and lower taxes, partially offset by higher depreciation and amortization. Diluted EPS for fiscal 2025 was $0.54 per share, compared with adjusted diluted EPS of $0.42 in the prior year. Turning to liquidity. At the end of the quarter, we had zero debt outstanding, $393 million in cash and investments, and access to a $75 million undrawn revolver, with an option to increase our liquidity if needed. Note, we expect to increase the size of the revolving facility and extend its maturity date in Q1.

Tricia Tolivar: For the full fiscal year, we reported GAAP net income of $63.7 million, compared to adjusted net income of $50.2 million in the prior year, an increase of 26.9% due to higher operating performance and lower taxes, partially offset by higher depreciation and amortization. Diluted EPS for fiscal 2025 was $0.54 per share, compared with adjusted diluted EPS of $0.42 in the prior year. Turning to liquidity. At the end of the quarter, we had zero debt outstanding, $393 million in cash and investments, and access to a $75 million undrawn revolver, with an option to increase our liquidity if needed. Note, we expect to increase the size of the revolving facility and extend its maturity date in Q1.

Speaker #1: Diluted EPS for fiscal 2025 was $54 per share compared with adjusted diluted EPS of $42 in the prior year. Turning to liquidity, at the end of the quarter, we had zero debt outstanding, $393 million in cash and investments, and access to a $75 million undrawn revolver with an option to increase our liquidity if needed.

Speaker #1: Note, we expect to increase the size of the revolving facility and extend its maturity date in the first quarter. When looking at full-year 2025, cash flow from operations was $184.8 million, compared to $161 million during the full-year 2024.

[Company Representative] (CAVA Group): When looking at full year 2025, cash flow from operations was $184.8 million, compared to $161 million during the full year 2024. This increase was primarily driven by improved operating performance. Free cash flow in 2025 was $26.1 million, a decrease of $26.8 million compared to full year 2024 due to capital expenditures. Now to our outlook for full year 2026, we expect the following: 74 to 76 net new CAVA restaurant openings, CAVA same-restaurant sales of 3% to 5%, CAVA restaurant-level profit margin between 23.7% and 24.2%, pre-opening costs between $19.5 million and 20 million, and adjusted EBITDA, including the burden of pre-opening costs between $176 million and 184 million.

Tricia Tolivar: When looking at full year 2025, cash flow from operations was $184.8 million, compared to $161 million during the full year 2024. This increase was primarily driven by improved operating performance. Free cash flow in 2025 was $26.1 million, a decrease of $26.8 million compared to full year 2024 due to capital expenditures. Now to our outlook for full year 2026, we expect the following: 74 to 76 net new CAVA restaurant openings, CAVA same-restaurant sales of 3% to 5%, CAVA restaurant-level profit margin between 23.7% and 24.2%, pre-opening costs between $19.5 million and 20 million, and adjusted EBITDA, including the burden of pre-opening costs between $176 million and 184 million.

Speaker #1: This increase was primarily driven by improved operating performance. Free cash flow in 2025 was $26.1 million, a decrease of 26.8 million compared to full-year 2024 due to capital expenditures.

Speaker #1: Now to our outlook for full-year 2026, we expect the following: $74 to $76 net new CAVA restaurant openings, CAVA same restaurant sales of 3% to 5%, CAVA restaurant level profit margin between 23.7% and 24.2%, pre-opening costs between $19.5 million and $20 million, and adjusted EBITDA, including the burden of pre-opening costs between $176 million and $184 million.

Speaker #1: I'd like to provide some additional thoughts on our outlook. Turning to same restaurant sales, we expect 3 to 5 percent growth this year. As we exited last year, we began to see momentum in same restaurant sales with first-quarter comp trends tracking above our full-year guidance.

[Company Representative] (CAVA Group): I'd like to provide some additional thoughts on our outlook. Turning to same-restaurant sales, we expect 3% to 5% growth this year. As we exited last year, we began to see momentum in same-restaurant sales, with Q1 comp trends tracking above our full year guidance. Having said that, given the dynamic consumer backdrop in 2025 and uncertainty across today's macroeconomic landscape, our guidance for the rest of the year assumes a low to mid-single-digit same-restaurant sales, which is in line with our long-term algorithm. In January 2026, we implemented an approximate 1.4% in-restaurant menu price adjustment, and we do not plan to take any additional price in 2026. Importantly, this adjustment did not include price increases to our base bowl, allowing us to maintain strong everyday value for our guests.

Tricia Tolivar: I'd like to provide some additional thoughts on our outlook. Turning to same-restaurant sales, we expect 3% to 5% growth this year. As we exited last year, we began to see momentum in same-restaurant sales, with Q1 comp trends tracking above our full year guidance. Having said that, given the dynamic consumer backdrop in 2025 and uncertainty across today's macroeconomic landscape, our guidance for the rest of the year assumes a low to mid-single-digit same-restaurant sales, which is in line with our long-term algorithm. In January 2026, we implemented an approximate 1.4% in-restaurant menu price adjustment, and we do not plan to take any additional price in 2026. Importantly, this adjustment did not include price increases to our base bowl, allowing us to maintain strong everyday value for our guests.

Speaker #1: Having said that, given the dynamic consumer backdrop in 2025 and uncertainty across today’s macroeconomic landscape, our guidance for the rest of the year assumes low to mid-single-digit same restaurant sales, which is in line with our long-term algorithm.

Speaker #1: Additionally, in January 2026, we implemented an approximate $1.4% in-restaurant menu price adjustment, and we do not plan to take any additional price in 2026.

Speaker #1: Importantly, this adjustment did not include price increases to our base bowl, allowing us to maintain strong everyday value for our guests. On the cost side, we expect low single-digit inflation across food, beverage, and packaging, and low to mid-single-digit labor inflation, inclusive of modest incremental investment to support our AGM program.

[Company Representative] (CAVA Group): On the cost side, we expect low single-digit inflation across food, beverage, and packaging, and low to mid-single-digit labor inflation, inclusive of modest incremental investment to support our AGM program. Keep in mind, beginning in Q2, we expect salmon to be a margin rate headwind of approximately 100 basis points, while pricing will drive penny profit neutrality. Shifting to general and administrative expenses, as Brett outlined, we are making targeted investments in our field leadership model to support operations and elevate standards as we scale, including the addition of 2 zone leaders, a new market leader role, and narrower spans of control. As a result, we expect G&A as a % of revenue in 2026 to remain relatively flat year-over-year.

Tricia Tolivar: On the cost side, we expect low single-digit inflation across food, beverage, and packaging, and low to mid-single-digit labor inflation, inclusive of modest incremental investment to support our AGM program. Keep in mind, beginning in Q2, we expect salmon to be a margin rate headwind of approximately 100 basis points, while pricing will drive penny profit neutrality. Shifting to general and administrative expenses, as Brett outlined, we are making targeted investments in our field leadership model to support operations and elevate standards as we scale, including the addition of 2 zone leaders, a new market leader role, and narrower spans of control. As a result, we expect G&A as a % of revenue in 2026 to remain relatively flat year-over-year.

Speaker #1: Keep in mind, beginning in the second quarter, we expect salmon to be a margin rate headwind of approximately 100 basis points, while pricing will drive penny profit neutrality.

Speaker #1: Shifting to general and administrative expenses, as Brett outlined, we are making targeted investments in our field leadership model to support operations and elevate standards as we scale.

Speaker #1: Including the addition of two zone leaders, a new market leader role, and narrower spans of control. As a result, we expect G&A as a percent of revenue in 2026 to remain relatively flat year over year.

Speaker #1: These investments are well-timed for our next phase of growth to ensure operational integrity and will support Doug as he comes on board and begins partnering with our team.

[Company Representative] (CAVA Group): These investments are well-timed for our next phase of growth to ensure operational integrity and will support Doug as he comes on board and begins partnering with our team. Before we move to Q&A, I want to acknowledge our restaurant, manufacturing, and support center teams. Our momentum reflects the strength of our model, and we're grateful to the team who make that possible. Thank you all for bringing heart, health, and humanity to food every day. With that, I'll turn it over to the operator for Q&A.

Tricia Tolivar: These investments are well-timed for our next phase of growth to ensure operational integrity and will support Doug as he comes on board and begins partnering with our team. Before we move to Q&A, I want to acknowledge our restaurant, manufacturing, and support center teams. Our momentum reflects the strength of our model, and we're grateful to the team who make that possible. Thank you all for bringing heart, health, and humanity to food every day. With that, I'll turn it over to the operator for Q&A.

Speaker #1: Before we move to Q&A, I want to acknowledge our restaurant, manufacturing, and support center teams. Our momentum reflects the strength of our model and we're grateful to the teams who make that possible.

Speaker #1: Thank you all for bringing heart, health, and humanity to food every day. And with that, I'll turn it over to the operator for Q&A.

Speaker #2: Princess, are you there? Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by the number one on your touchstone phone.

Operator: Princess, you there? Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by 1 on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline for the polling process, please press star followed by 2. If you're using a speakerphone, please lift the handset before pressing any keys. As a reminder, please ask 1 question, and if you wish to do a follow-up, please stay queue back on the call. Your first question comes from the line of John Ivankoe from JPMorgan. Your line is now open.

Matt Milanovich: Princess, you there?

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by 1 on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline for the polling process, please press star followed by 2. If you're using a speakerphone, please lift the handset before pressing any keys. As a reminder, please ask 1 question, and if you wish to do a follow-up, please stay queue back on the call. Your first question comes from the line of John Ivankoe from JPMorgan. Your line is now open.

Speaker #2: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the number two.

Speaker #2: If you're using a speakerphone, please lift the handset before pressing any keys. As a reminder, please ask one question, and if you wish to do a follow-up, please hit the cue back on the call.

Speaker #2: Your first question comes from the line of John Evento. From JP Morgan, your line is now open.

Speaker #3: Hi. Thank you very much. So I'm going to ask the question about same-store sales, and maybe a little bit differently. New unit volumes continue to be strong in the fourth quarter of '25.

John Ivankoe: Hi, thank you very much. I'm gonna ask the question about same-store sales and maybe a little bit differently. You know, new unit volumes continued to be strong in Q4 of 2025. Quite frankly, they've been strong the last couple of years. I think there was at least some conversation that maybe, you know, these strong new units that were entering the comp base would actually be a negative, you know, throughout parts of 2025 and certainly in 2026. I wanted to comment, you know, if that was still happening, and if that's the case, where new units are coming into the comp base negative, can you describe the other pockets of strength in your more mature units, you know, that are leading to such outsized comps, particularly in Q1?

Speaker #3: Quite frankly, they've been strong the last couple of years. I think there was at least some conversation that maybe these strong new units that were entering the comp base would actually be a negative throughout parts of '25 and certainly in the '26.

Speaker #3: So one of the comments, if that was still happening, and if that's the case, where new units are coming into the comp base negative, can you describe the other pockets of strength in your more mature units that are leading to such outsized comps, particularly in the first quarter?

Speaker #4: Hey, John. Thanks for the question. So as you know, our same restaurant sales are calculated on a full-year basis. So after about 12 months of performance, they come into the comp base, and as you called out, those restaurants have been performing very well.

[Company Representative] (CAVA Group): Hey, John. Thanks for the question. As you know, our same-restaurant sales are calculated on a full year basis. After about 12 months of performance, they come into the comp base, and as you called out, those restaurants have been performing very well and provided some headwinds, as they came into the base in 2025. Those were not significant overall to the same-restaurant sales in general. In fact, we're seeing strength across all of our vintages of restaurants, all of our geographies across the country, the income cohorts, as of our restaurants, based on median household incomes in those markets. That's really supporting the same-restaurant sales results, that we've delivered and what we're seeing as we go into 2026, overall.

Tricia Tolivar: Hey, John. Thanks for the question. As you know, our same-restaurant sales are calculated on a full year basis. After about 12 months of performance, they come into the comp base, and as you called out, those restaurants have been performing very well and provided some headwinds, as they came into the base in 2025. Those were not significant overall to the same-restaurant sales in general. In fact, we're seeing strength across all of our vintages of restaurants, all of our geographies across the country, the income cohorts, as of our restaurants, based on median household incomes in those markets. That's really supporting the same-restaurant sales results, that we've delivered and what we're seeing as we go into 2026, overall.

Speaker #4: And provided some headwinds, so as they came into the base in 2025, those were not significant overall to the same restaurant sales in general and, in fact, we're seeing strength across all of our vintages of restaurants and all of our geographies across the country.

Speaker #4: The income cohorts of our restaurants based on median household incomes in those markets, that's really supporting the same restaurants' sales results that we've delivered and what we're seeing as we go into 2026 overall.

Speaker #3: Thank you.

John Ivankoe: Thank you.

Speaker #2: Your next question comes from the line of Sharon Zaffia from William Blair. Your line is now open.

Operator: Your next question comes from the line of Sharon Zackfia from William Blair. Your line is now open.

Speaker #5: Hi, thanks. I guess just to follow up on John's question, can you talk about what your assumptions are for new unit productivity in '26, kind of embedded in your guidance?

Sharon Zackfia: Hi, thanks. I guess just to follow up on John's question, can you talk about what your assumptions are for new unit productivity in 2026, kind of embedded in your guidance? Tricia, on the comps, is there any inherent reason other than just general macro uncertainty that you would expect comps to decelerate the rest of the year? It seems like salmon, but also give you some extra ticket there. Thank you.

Speaker #5: And then Tricia, on the comps, is there any inherent reason other than just general macro uncertainty that you would expect comps to decelerate the rest of the year?

Speaker #5: It seems like salmon would also give you some extra ticket there. Thank you.

Speaker #4: Yep. Thanks, Sharon. So our new restaurant productivity assumption included in our guidance is about 90%. As you know, our '25 cohort delivered over 100% productivity, but we wanted to be very thoughtful in our assumptions as we went into 2026.

[Company Representative] (CAVA Group): Yep. Thanks, Sharon. Our new restaurant productivity assumption included in our guidance is about 90%. As you know, our 25 cohort delivered over 100% productivity, but we wanted to be very thoughtful in our assumptions as we went into 2026, and we're seeing good results so far, but our guidance reflects a 90% new restaurant productivity assumption. As you think about comps, you would naturally expect that introductions of new menu items would drive performance and lifts and traffic overall. Our guidance reflects our long-term algorithm, which is low to mid-single-digit assumptions from here on out. Again, in wanting to be very thoughtful, understanding and anticipating the broader consumer environment, any macro pressures that might be out there, volatility in the restaurant industry in general.

Tricia Tolivar: Yep. Thanks, Sharon. Our new restaurant productivity assumption included in our guidance is about 90%. As you know, our 25 cohort delivered over 100% productivity, but we wanted to be very thoughtful in our assumptions as we went into 2026, and we're seeing good results so far, but our guidance reflects a 90% new restaurant productivity assumption. As you think about comps, you would naturally expect that introductions of new menu items would drive performance and lifts and traffic overall. Our guidance reflects our long-term algorithm, which is low to mid-single-digit assumptions from here on out. Again, in wanting to be very thoughtful, understanding and anticipating the broader consumer environment, any macro pressures that might be out there, volatility in the restaurant industry in general.

Speaker #4: And we’re seeing good results so far, but our guidance reflects a 90% new restaurant productivity assumption. And then, as you think about comps, you would naturally expect an introduction of new menu items would drive performance and lifts in traffic overall, but our guidance reflects our long-term algorithm, which is low- to mid-single-digit assumptions from here on out.

Speaker #4: Again, in wanting to be very thoughtful, understanding, and anticipating the broader consumer environment, any macro pressures that might be out there, volatility in the restaurant industry in general.

Speaker #4: While we're not seeing that or experiencing that in our quarter results to date, we wanted to reflect that in our assumptions. So as we guide, we're thinking same restaurant sales, be fairly even throughout the quarters of the year, despite the fact that we have a very robust pipeline of opportunities ahead of us.

[Company Representative] (CAVA Group): While we're not seeing that or experiencing that in our quarter results to date, we wanted to reflect that in our assumptions. As we guide, we're thinking same-restaurant sales to be fairly even throughout the quarters of the year, despite the fact that we have a very robust pipeline of opportunities ahead of us.

Tricia Tolivar: While we're not seeing that or experiencing that in our quarter results to date, we wanted to reflect that in our assumptions. As we guide, we're thinking same-restaurant sales to be fairly even throughout the quarters of the year, despite the fact that we have a very robust pipeline of opportunities ahead of us.

Speaker #2: Your next question comes from the line of Jake Bartlett from Thruvis Securities. Your line is now open.

Operator: Your next question comes from the line of Jake Bartlett from Truist Securities. Your line is now open.

Speaker #6: Great. Thanks for taking the question. Mine was on your restaurant-level margin outlook. And actually, also the pressure you had in '25 relative to your long-term guidance.

Jake Bartlett: Great, thanks for taking the question. Mine was on your restaurant-level margin, you know, outlook, and actually, you know, also the pressure you had in 25 relative to your long-term guidance. The question is, how much of the pressures that you're seeing, you expect to see in 26 are temporary, things like, you know, bringing on the salmon, and that will go away on their own? Then the other question is what actions are you gonna take or do you plan to take to get back to that 25% long-term target?

Speaker #6: So the question is, how much of the pressures that you're seeing you expect to see in '26 are temporary things like bringing on the salmon, and that will go away on their own?

Speaker #6: And then the other question is, what actions are you going to take, or do you plan to take, to get back to that 25% long-term target?

Speaker #4: Yeah. So as we think about going forward, we're always focused on making investments. So investments in team members, investments in the guests, and sometimes those have impacts on our restaurant-level margins.

[Company Representative] (CAVA Group): Yeah. As we think about going forward, we're always focused on making investments. Investments in team members, investments in the guests, and sometimes those have impacts on our restaurant-level margins. The power of our model is very strong, and with robust AUVs at $2.9 million, we're able to pass things along into our business without passing costs on to the guests. When I talk about investments, think about modest price increases. Our base bowls, for example, we did not increase at all when we raised prices at the beginning of this year, making investment in the guests and making ourselves even more accessible than we've ever been. As you're thinking about restaurant-level margins overall, 25% is not our target.

Tricia Tolivar: Yeah. As we think about going forward, we're always focused on making investments. Investments in team members, investments in the guests, and sometimes those have impacts on our restaurant-level margins. The power of our model is very strong, and with robust AUVs at $2.9 million, we're able to pass things along into our business without passing costs on to the guests. When I talk about investments, think about modest price increases. Our base bowls, for example, we did not increase at all when we raised prices at the beginning of this year, making investment in the guests and making ourselves even more accessible than we've ever been. As you're thinking about restaurant-level margins overall, 25% is not our target.

Speaker #4: But the power of our model is very strong, and with robust AUVs at 2.9 million dollars, we're able to pass things along into our business without passing costs onto the guest.

Speaker #4: So when I talk about investments, think about modest price increases. So, our base bowls, for example, we did not increase at all when we raised prices at the beginning of this year.

Speaker #4: Making investment in the guests and making ourselves even more accessible than we've ever been. And as you're thinking about restaurant-level margins overall, 25% is not our target.

Speaker #4: That is something that we have been able to deliver, but we've also been very thoughtful about making reinvestments to build this brand for the long term.

[Company Representative] (CAVA Group): That is something that we have been able to deliver, but we've been also very thoughtful about making reinvestments to build this brand for the long term. As it relates to 2026, yes, we're going to introduce salmon, and it will be a premium item, much like steak was, and it will have a headwind to overall restaurant-level margins of about 100 basis points when we launch it, but it'll drive penny profit neutrality overall. Additionally, we'll continue to make investments in labor. We started with an additional investment with our AGM program in December 2025.

Tricia Tolivar: That is something that we have been able to deliver, but we've been also very thoughtful about making reinvestments to build this brand for the long term. As it relates to 2026, yes, we're going to introduce salmon, and it will be a premium item, much like steak was, and it will have a headwind to overall restaurant-level margins of about 100 basis points when we launch it, but it'll drive penny profit neutrality overall. Additionally, we'll continue to make investments in labor. We started with an additional investment with our AGM program in December 2025.

Speaker #4: So as it relates to 2026, yes, we're going to introduce salmon. It will be a premium item, much like steak was, and it will have a headwind to overall restaurant-level margins of about 100 basis points when we launch it, but it'll drive penny profit neutrality overall.

Speaker #4: Additionally, we'll continue to make investments in labor. We started with additional investments with our AGM program in December of 2025. There'll be some modest investments there on the labor line.

[Company Representative] (CAVA Group): There'll be some modest investments there on the labor line, and then always looking to make sure that we're paying our team members a fair wage and evaluating that against our competitors, so that we're a top payer in the market, so that we can create opportunities for our team members, so they can deliver on an amazing guest experience.

Tricia Tolivar: There'll be some modest investments there on the labor line, and then always looking to make sure that we're paying our team members a fair wage and evaluating that against our competitors, so that we're a top payer in the market, so that we can create opportunities for our team members, so they can deliver on an amazing guest experience.

Speaker #4: And then always looking to make sure that we're paying our team members a fair wage, and evaluating that against our competitors so that we're a top payer in the market, so that we can create opportunities for our team members so they can deliver on an amazing guest experience.

Speaker #2: Your next question comes from the line of Sarah Senatore from Bank of America. Your line is now open.

Operator: Your next question comes from the line of Sara Senatore from Bank of America. Your line is now open.

Speaker #5: Thank you. I guess maybe as I think about the to your point about the same store sales growth kind of accelerating, I think you identified a few drivers, and I was wondering if maybe you could I don't know, order of magnitude or help me think through what the sort of what really turned the dial because I think the rest of the industry hasn't seen this kind of inflection.

Sara Senatore: Thank you. I guess maybe as I think about the, you know, to your point about the same-restaurant sales growth kind of accelerating, I think you identified a few drivers, and I was wondering if maybe you could, I don't know, order of magnitude or help me think through, you know, what the sort of, what really turned the dial. I think the rest of the industry hasn't seen this kind of inflection. I think you mentioned, you know, your obviously, the AGM, you had some innovation, I think, and then the tiered loyalty. I don't know if you could sort of disaggregate.

Speaker #5: But I think you mentioned you're obviously the AGM, you had some innovation, I think, and then the tiered loyalty. I don't know if you could sort of disaggregate.

Speaker #5: I know that's hard, but trying to think through kind of what of these maybe was the sort of hallmark of the improvement, and then as you think through kind of that AGM rollout, is there anything that we could look at that says, like, throughput gets better, or I know they're performing better, but sort of anything to quantify as we think about getting to maybe 100%?

Sara Senatore: I know that's hard, but trying to think through kind of what of these maybe was the sort of hallmark of the improvement. Then, you know, as you think through kind of that AGM rollout, is there anything that we could look at that says, you know, like, throughput gets better, or, you know, I know they're performing better, but sort of anything to quantify as we think about getting to maybe 100%? Thank you.

Speaker #5: Thank you.

Speaker #4: Hey, Sarah. So as we look at the two-year stack of same restaurant sales, as you indicated, we saw sequential improvement throughout 2025 from first quarter to second quarter to third quarter and into first into fourth quarter.

[Company Representative] (CAVA Group): Hey, Sara. As we look at the two-year stack of same-restaurant sales, as you indicated, we saw sequential improvement throughout 2025, from Q1 to Q2 to Q3 and into Q4. There really isn't one thing that was driving that. You mentioned a lot of the initiatives that we put into place, and that there isn't any one single thing that was driving the overall results. I've sometimes talked in the past about how the drivers of same-restaurant sales are a little bit like a CAVA bowl. A lot of amazing individual items that come together to produce something that's pretty impactful, and that's what we're seeing. Encouraged by what we're seeing with AGMs, that started launching in December 2025.

Tricia Tolivar: Hey, Sara. As we look at the two-year stack of same-restaurant sales, as you indicated, we saw sequential improvement throughout 2025, from Q1 to Q2 to Q3 and into Q4. There really isn't one thing that was driving that. You mentioned a lot of the initiatives that we put into place, and that there isn't any one single thing that was driving the overall results. I've sometimes talked in the past about how the drivers of same-restaurant sales are a little bit like a CAVA bowl. A lot of amazing individual items that come together to produce something that's pretty impactful, and that's what we're seeing. Encouraged by what we're seeing with AGMs, that started launching in December 2025.

Speaker #4: There really isn’t one thing that was driving that. You mentioned a lot of the initiatives that we put into place, and that's—there isn’t any one single thing that was driving the overall results.

Speaker #4: Sometimes I’ve talked in the past about how the drivers of same-restaurant sales are a little bit like a CAVA bowl—a lot of amazing individual items that come together to produce something that's pretty impactful.

Speaker #4: And that's what we're seeing. So encouraged by what we're seeing with AGMs, that launched started launching in December of 2025. Wanting to be thoughtful about throughput, but not wanting to compromise on the guest experience.

[Company Representative] (CAVA Group): Wanting to be thoughtful about throughput, but not wanting to compromise on the guest experience, so we didn't pull any significant levers in there. Marketing is a lever that we are modestly leaning into and leveraging our media mix modeling work to be thoughtful in how we're communicating to the guests to drive traffic. Again, wanting to make sure that we are delivering amazing culinary that is healthful, makes us feel good while we eat it and after, with a great guest experience and hospitality. We're gonna continue to focus on that, to build a long-term, durable brand that delivers traffic momentum into the future.

Tricia Tolivar: Wanting to be thoughtful about throughput, but not wanting to compromise on the guest experience, so we didn't pull any significant levers in there. Marketing is a lever that we are modestly leaning into and leveraging our media mix modeling work to be thoughtful in how we're communicating to the guests to drive traffic. Again, wanting to make sure that we are delivering amazing culinary that is healthful, makes us feel good while we eat it and after, with a great guest experience and hospitality. We're gonna continue to focus on that, to build a long-term, durable brand that delivers traffic momentum into the future.

Speaker #4: So we didn't pull any significant levers in there. Marketing is a lever that we are modestly leaning into and leveraging our medium-mix modeling work to be thoughtful in how we're communicating the guests to drive traffic.

Speaker #4: But again, wanting to make sure that we are delivering amazing culinary that is healthful, makes us feel good while we eat it, and after with a great guest experience and hospitality.

Speaker #4: And we're going to continue to focus on that to build a long-term durable brand that delivers traffic momentum into the future.

Speaker #5: Thanks.

Sara Senatore: Thanks.

Speaker #2: Your next question comes from the line of Chris Oakles from Stifel. Your line is now open.

Operator: Your next question comes from the line of Chris O'Cull from Stifel. Your line is now open.

Speaker #7: Yeah. Thanks. Good afternoon, guys. Tricia, I had a follow-up on the conversation about media mix. I think the company has been leaning more towards or more heavily toward paid advertising.

Chris O'Cull: Yeah, thanks. Good afternoon, guys. Tricia, I had a follow-up on the conversation about media mix. I think the company has been leaning more towards, or more heavily toward paid advertising. I was hoping maybe you could elaborate on what you've been evaluating, whether you believe the ROI on these investments have been attractive, and, you know, whether there's any appetite to expand the effort.

Speaker #7: I was just hoping maybe you can elaborate on what you've been evaluating whether you believe the ROI on these investments has been attractive and whether there's any appetite to expand the effort.

Speaker #4: So we're learning every time we update our media mix modeling work, and we tweak our investments as we learn more. From that and monitor the ROAS and to make shifts accordingly.

[Company Representative] (CAVA Group): We're learning every time we update our media mix model and work, and we tweak our investments as we learn more from that, and monitor the ROAS, and to make shifts accordingly. We haven't significantly changed our overall marketing investment, but we wanna optimize that. You know, the one of the beauties of our model and the power of the appeal of the brand is it doesn't require a lot of media to drive the growth into the future, but we wanna make sure that we're optimizing it.

Tricia Tolivar: We're learning every time we update our media mix model and work, and we tweak our investments as we learn more from that, and monitor the ROAS, and to make shifts accordingly. We haven't significantly changed our overall marketing investment, but we wanna optimize that. You know, the one of the beauties of our model and the power of the appeal of the brand is it doesn't require a lot of media to drive the growth into the future, but we wanna make sure that we're optimizing it.

Speaker #4: We haven't significantly changed our overall marketing investment, but we want to optimize that. One of the beauties of our model and the power of the appeal of the brand is it doesn't require a lot of media to drive the growth into the future, but we want to make sure that we're optimizing it.

Speaker #4: We did drive a significant impact, or significant increase, in overall brand awareness over the past year. So, from about 55% a year ago to 62% today.

[Company Representative] (CAVA Group): We did drive a significant impact, or significant increase in overall brand awareness, over the past year, so from about 55%, a year ago to 62% today, and that has something to do with more restaurants opening across the country and the way we're able to optimize our investments in media.

Tricia Tolivar: We did drive a significant impact, or significant increase in overall brand awareness, over the past year, so from about 55%, a year ago to 62% today, and that has something to do with more restaurants opening across the country and the way we're able to optimize our investments in media.

Speaker #4: And that has something to do with more restaurants opening across the country and the way we're able to optimize our investments in media.

Speaker #2: Your next question comes from the line of Andrew Charles from TD Cowen. Your line is now open.

Operator: Your next question comes from the line of Andrew Charles from TD Cowen. Your line is now open.

Speaker #7: Great. Thanks. Tricia, I want to come back to the new store maturation that if you go back to the time of the IPO, you guys talked about how when stores enter the comp base, they comp around 10% year one, and around 8% year two.

Andrew Charles: Great, thanks. Tricia, I want to come back to the new store maturation. Now, if you go back to the time of the IPO, you guys talked about how when stores enter the comp base, they comp around 10% in year one and around 8% in year two. The output of that is usually around, call it 250 or 300 basis points benefit to same-store sales. I'm curious what's embedded within the impacts, you know, from new store maturation within the 3% to 5% guidance? I have a question for you, Kate. Talk about the test of salmon and what you observed there, and how do you compare and contrast it versus what you saw with Chicken Shawarma?

Speaker #7: And the output of that is usually around, call it, a 250 or 300 basis points benefit to same store sales. So I'm curious, what's embedded within the impact from new store maturation within the 3% to 5% guidance?

Speaker #7: A typical question for you: can you talk about the test of salmon and what you observed there, and how you compare and contrast it versus what you saw with chicken shawarma?

Speaker #4: Thanks, Andrew. So yes, our what we shared when we were on the IPO roadshow was that a new restaurant was started about 2.3 million in AUV and grew about 10% year one.

[Company Representative] (CAVA Group): Thanks, Andrew. Yes, our, what we shared when we were on the IPO roadshow was that a new restaurant would start at about $2.3 million in AUV and grow about 10% in year 1. In fact, over the past 2 years, we've seen those restaurants open much higher than that and experience, in some markets, a bit of a halo around those openings. We find that over time, those restaurants, at about month 18, start to perform more like what we would have seen historically. That's a reflection of that increase in brand awareness, the excitement around the brand, and the momentum that we're actually seeing.

Tricia Tolivar: Thanks, Andrew. Yes, our, what we shared when we were on the IPO roadshow was that a new restaurant would start at about $2.3 million in AUV and grow about 10% in year 1. In fact, over the past 2 years, we've seen those restaurants open much higher than that and experience, in some markets, a bit of a halo around those openings. We find that over time, those restaurants, at about month 18, start to perform more like what we would have seen historically. That's a reflection of that increase in brand awareness, the excitement around the brand, and the momentum that we're actually seeing.

Speaker #4: And in fact, over the past two years, we've seen those restaurants open much higher than that and experience, in some markets, a bit of a halo around those openings.

Speaker #4: We find that over time, those restaurants that about month 18 start to perform more like what we would have seen historically. And it's a reflection of that increase in brand awareness, the excitement around the brand, and the momentum that we're actually seeing.

Speaker #4: But at the end of the day, the cash-on-cash returns are much stronger because we're pulling forward those revenues, such that in year two, we're exceeding what our expectations were both on the top line and the bottom line.

[Company Representative] (CAVA Group): At the end of the day, the cash-on-cash returns are much stronger because we're pulling forward those revenues, such that in year two, we're exceeding what our expectations were, both on the top line and the bottom line, from perspective. When we think about guidance, we know what we saw in 2024 with that cohort of openings, and we've modeled 25 impact of openings on 26 to be slightly larger of a negative impact in guidance than what we experienced in 2025, because those 25 openings were stronger than the 24 cohort themselves, and that has been built into the guidance overall. You asked also about the salmon test versus Chicken Shawarma.

Tricia Tolivar: At the end of the day, the cash-on-cash returns are much stronger because we're pulling forward those revenues, such that in year two, we're exceeding what our expectations were, both on the top line and the bottom line, from perspective. When we think about guidance, we know what we saw in 2024 with that cohort of openings, and we've modeled 25 impact of openings on 26 to be slightly larger of a negative impact in guidance than what we experienced in 2025, because those 25 openings were stronger than the 24 cohort themselves, and that has been built into the guidance overall. You asked also about the salmon test versus Chicken Shawarma.

Speaker #4: From perspective. And so when we think about guidance, we know what we saw in 2024 with that cohort of openings. And we've modeled 25 impacts of openings on 26 to be slightly larger of a negative impact in guidance than what we experienced in 2025 because those 25 openings were stronger than the 24 cohort themselves.

Speaker #4: And that has been built into the guidance overall. You asked also about the salmon test versus chicken shawarma. Bringing in salmon at the end of the quarter on its amazing pomegranate glaze, and in test results, performed a little bit better than chicken shawarma, but we've also been very thoughtful in how we're building that into our guidance assumptions and going back to we looked at trends, quarter to date, layered on a load mid-single digit out long-term algorithms assumption for the rest of the year.

[Company Representative] (CAVA Group): Bringing in salmon, at the end of the quarter, its amazing pomegranate glaze, and in test results, performed a little bit better than Chicken Shawarma. We've also been very thoughtful in how we're building that into our guidance assumptions and going back to, we looked at trends quarter to date, layered on a low to mid-single digit out long-term algorithms assumption for the rest of the year. We've been very thoughtful in how we're applying any new culinary initiatives that are going to roll out.

Tricia Tolivar: Bringing in salmon, at the end of the quarter, its amazing pomegranate glaze, and in test results, performed a little bit better than Chicken Shawarma. We've also been very thoughtful in how we're building that into our guidance assumptions and going back to, we looked at trends quarter to date, layered on a low to mid-single digit out long-term algorithms assumption for the rest of the year. We've been very thoughtful in how we're applying any new culinary initiatives that are going to roll out.

Speaker #4: So have been very thoughtful in how we're applying any new culinary initiatives that are going to roll out.

Speaker #7: It's very helpful. Thank you.

Brian Harbour: Very helpful. Thank you.

Andrew Charles: Very helpful. Thank you.

Speaker #2: Your next question comes from the line of Danilo Gargilio from Bernstein. Your line is now open.

Operator: Your next question comes from the line of Danilo Gargiulo from Bernstein. Your line is now open.

Speaker #7: Okay. I'll give a little breather to Tricia and ask the question to Brad this time. So Brad, I wonder if you can elaborate on Project Sol more how many stores now have the new design.

Danilo Gargiulo: Okay, I'll give a little breather to Tricia and ask the question to Brett this time. Brett, I wonder if you can elaborate on Project Soul more, how many stores now have the new design, early learnings that you're seeing or different experiences from consumers, and if there is any financial metric that you're willing to share regarding the outperformance or, you know, underperformance or equal performance of the stores versus the control group, that would be helpful as well. Thank you.

Speaker #7: Early learnings that you're seeing or different experiences from consumers and if there is any financial metric that you're willing to share regarding the outperformance or underperformance or equal performance of the stores versus the control group, that would be helpful as well.

Speaker #7: Thank you.

Speaker #8: Hey, Danilo. Thanks for the question and giving Tricia a breather. We have Project Sol or elements of Project Sol in roughly 100 locations to date.

Brett Schulman: Hey, Danilo, thanks for the question and giving Tricia a breather. We have Project Soul or elements of Project Soul in roughly 100 locations to date. Every new restaurant gets the full Project Soul design, and we have seen improved aesthetic scores from our guests. They certainly feel the warmer environment, the more vibrant environment, and an environment that's more evocative of dwelling for a bit and sharing a meal in our physical space. It certainly is communicating our brand essence in a compelling way, and we're excited to roll it out in all new restaurants. As older restaurants age, we'll go back and remodel and apply the Project Soul design to those aging restaurants. As far as the quantifiable impact, we have not disclosed that to date on what we've seen from a Project Soul perspective.

Speaker #8: Every new restaurant gets the full Project Sol design. And we have seen improved aesthetic scores from our guests. They certainly feel the warmer environment, the more vibrant environment.

Speaker #8: And an environment that's more evocative of dwelling for a bit and sharing a meal in our physical space. So it certainly is communicating our brand essence in a compelling way.

Speaker #8: And we're excited to roll it out in all new restaurants. And then, as older restaurants age, we'll go back and remodel and apply the Project Sol design to those aging restaurants.

Speaker #8: As far as the quantifiable impact, we have not disclosed that to date on what we've seen from a Project Sol perspective.

Speaker #7: Okay. Thank you.

Danilo Gargiulo: Okay, thank you.

Speaker #2: Your next question comes from the line of David Tarantino from Beard. Your line is now open.

Operator: Your next question comes from the line of David Tarantino from Baird. Your line is now open.

Speaker #9: Hi. Good afternoon. Brad, I'll keep you involved in the conversation here. I wanted to ask, I guess, 2026, according to your guidance, will be the year where you cross over the 500-unit mark.

David Tarantino: Hi, good afternoon. Brett, I'll keep you involved in the conversation here. I wanted to ask, I guess 2026, you know, according to your guidance, will be the year where you cross over the 500 unit mark. And I know you and I have talked about that being a critical point where you need the right infrastructure and, you know, right systems to support growth, you know, for the next 500 or so units. So I wanted you to maybe give an update on where you think you are in terms of, you know, what ideally you need in terms of systems, infrastructure, people.

Speaker #9: And I know you and I have talked about that being a critical point where you need the right infrastructure and right systems to support growth for the next 500 or so units.

Speaker #9: So I wanted you to maybe give an update on where you think you are in terms of what ideally you need in terms of systems, infrastructure, people.

Speaker #9: I know you mentioned the field leadership model that you recently rolled out. But I guess any other changes you think you need to accomplish the growth you want to beyond this year?

David Tarantino: I know you mentioned the field leadership model that you recently rolled out, I guess any other changes do you think you need to accomplish the growth you want to, you know, beyond this year?

Speaker #8: Yeah. Thanks, David. I mean, I feel good about where we stand from a manufacturing infrastructure, a technology infrastructure, our digital ecosystem. We've invested heavily in our data infrastructure.

Brett Schulman: Yeah, thanks, David. I mean, I feel good about where we stand from a manufacturing infrastructure, a technology infrastructure, you know, our digital ecosystem we've invested heavily in. Our data infrastructure, we made a lot of progress in the past year on our new data foundation to be able to leverage modern data technologies and LLMs and really unlock productivity improvements in the business, both in our restaurants, on marketing, and insights across corporate. Certainly, the priority from an infrastructure standpoint, beyond what we've already built, is deepening and broadening our people development pipeline. I referenced it in the prepared remarks as Doug comes on board in the new Flavor Your Future platform we launched this past fall.

Speaker #8: We made a lot of progress in the past year on our new data foundation to be able to leverage modern data technologies and LLMs.

Speaker #8: And really unlock productivity improvements in the business, both in our restaurants, on marketing, and insights across corporate. Certainly, the priority from an infrastructure standpoint beyond what we've already built is deepening and broadening our people development pipeline.

Speaker #8: And I referenced it in the prepared remarks as Doug comes on board and the new flavor your future platform. We launched this past fall.

Speaker #8: We're so very excited to create real, clear, explicit development paths and to have a developmental system that takes our team members from entering our door as a team member on the line to growing into a multimillion-dollar restaurant leader.

Brett Schulman: Very excited to create real, clear, explicit development paths and have a developmental system that takes our team members from entering our door, as a team member on the line, to growing into a multimillion-dollar restaurant leader. That is the biggest governor, as I've said, to our growth, and I feel good about where we stand today. This is really to ensure that we have the foundation in place, that, you know, our guidance is for 74 to 76 restaurants next year. As we continue to grow our compound annual unit growth rate, we'll be staring down the barrel of a 100-plus restaurants a year, that we've got that role-ready bench of leaders and career paths for them.

Speaker #8: That is the biggest governor, as I've said, to our growth. And I feel good about where we stand today. But this is really to ensure that we have the foundation in place that our guidance is for 74 to 76 restaurants next year.

Speaker #8: But as we continue to grow our compound annual unit growth rate, we'll be staring down the barrel of 100-plus restaurants a year that we've got that role ready bench of leaders and career paths for them.

Speaker #8: And then lastly, I'll say we also referenced in the prepared remarks some of the infrastructure we put in the kitchen. To make sure not only from simplicity of operations, but flexibility from an innovation standpoint, our turbo chef ovens as well as from an execution standpoint on digital order accuracy, our new KDS system.

Brett Schulman: Lastly, I'll say, you know, we also referenced in the prepared remarks, some of the infrastructure we put in the kitchen to make sure not only from simplicity of operations, but flexibility from an innovation standpoint, our TurboChef ovens, as well as from an execution standpoint on digital order accuracy, our new KDS system. Feel good about where we stand, and, you know, as Tricia talked about, we continue to reinvest in our teams and in our guests for long-term sustainable growth and long-term sustainable restaurant-level margin expansion.

Speaker #8: So feel good about where we stand. And as Tricia talked about, we continue to reinvest in our teams and in our guests for long-term sustainable growth and long-term sustainable restaurant-level margin expansion.

Speaker #9: Great. Thank you.

David Tarantino: Great. Thank you.

Speaker #2: Your next question comes from the line of Brian Harbor from Morgan Stanley. Your line is now open.

Operator: Your next question comes from the line of Brian Harbour from Morgan Stanley. Your line is now open.

Speaker #10: Yeah. Thanks. Good afternoon, guys. Maybe just now that you have a new COO in place, what you talked a lot about people, but I guess what are some of the other kind of operations priorities or what are some things that you think can really make the difference as we think about this year and next on the operations side?

Brian Harbour: Yeah, thanks. Good afternoon, guys. Maybe just, you know, now that you have a new COO in place, you know, You talked a lot about people, but I guess, what are some of the other kind of, you know, operations priorities, or what are some things that you think could really make the difference as we think about this year and next on the operations side?

Speaker #8: Yeah, Brian, thanks for the question. Certainly, the number one priority is that people development pipeline. Number two, I'd say, is elevating our hospitality to truly be reflective of our Mediterranean brand essence in every interaction that every guest has across our restaurants.

Brett Schulman: ... Yeah, Brian, thanks for the question. Certainly, number one priority is that people development pipeline. Number two, I'd say, is elevating our hospitality to truly be reflective of our Mediterranean brand essence in every interaction that every guest has across our restaurants. Lastly, I'd say to just elevate the consistency of how we deliver our operational execution, every location, every shift, whether that's Sunday night, not just peak lunch on a Wednesday.

Speaker #8: And lastly, I'd say to just elevate the consistency of how we deliver our operational execution at every location, every shift—whether that's Sunday night or not just peak lunch on a Wednesday.

Speaker #2: Your next question comes from the line of Brian Mullen from Piper Sandler. Your line is now open.

Operator: Your next question comes from the line of Brian Mullan from Piper Sandler. Your line is now open.

Speaker #7: Okay. Thank you. Just wanted to ask about catering. Can you update us on what you're learning or testing for in the Houston market? Is the plan still to test in a new market at some point this year?

Brian Mullan: Okay, thank you. Just wanted to ask about catering. Can you update us on what you're learning or testing for in the Houston market? Is the plan still to test in a new market at some point this year? Then just related to that, you know, I'm not trying to get ahead of ourselves with this, but when you do decide the business is ready for catering more broadly, do you envision kind of a region by region, or would it be something you'd look to turn on everywhere? Does that require dedicated sales, or are there other ways to grow awareness? I know you believe there's demand, so just your take on all that.

Speaker #7: And then just relate that I'm not trying to get ahead of ourselves with this, but when you do decide the business is ready for catering more broadly, do you envision kind of a region-by-region?

Speaker #7: Or would it be something you'd look to turn on everywhere and does that require dedicated sales? Or are there other ways to grow awareness?

Speaker #7: I know you believe there's demand. So just your take on all that.

Speaker #8: Yeah. Thanks, Brian. We certainly are excited about the potential of catering and the demand we see. And we are also very sensitive to making sure that we do this thoughtfully to set our operators up for success and to be able to deliver on the guest experience we're committing to.

Brett Schulman: Yeah. Thanks, Brian. We certainly are excited about the potential of catering and the demand we see, and we are also very sensitive to making sure that we do this thoughtfully to set our operators up for success and to be able to deliver on the guest experience we're committing to. We do expect a second market test in addition to our ongoing Houston market test later this year, and would see a potential expansion in 27 to additional markets. I don't think you'd see us go from a standing start to a national launch, but I do think we would get to a certain point of markets with catering that we felt confident enough that we have perfected and refined our catering channel, that we would then move to a national launch, progressing through our stage gate process.

Speaker #8: So, we do expect a second market test, in addition to our ongoing Houston market test, later this year. And we would see a potential expansion in 2027 to additional markets.

Speaker #8: I don't think you'd see us go from a standing start to a national launch. But I do think we would get to a certain point of markets with catering that we felt confident enough that we have perfected and refined our catering channel, that we would then move to a national launch, progressing through our Stagegate process.

Speaker #8: So we've had tremendous learnings to date. We have progressed and formalized our packaging. We are working on the final technology that will roll out into that second market test from a self-service model.

Brett Schulman: We've had tremendous learnings to date. We have progressed and formalized our packaging. We are working on the final technology that will roll out into that second market test from a self-service model. We have an internal sales team that harkens back to our Zoës Kitchen days, so we've got a great B2B sales team in place already. A lot of the elements there, we're just trying to be very thoughtful and very methodical because the production rhythm of catering is very different than our traditional channels of in-restaurant and digital. It's highly concentrated, high volume, so we want to make sure that we have the load balancing thought through and correct, and that we have our operators positioned and our guests' user experience up to the par of our other channels.

Speaker #8: We have an internal sales team that hearkens back to our Zoe's Kitchen Days. So we've got a great B2B sales team in place already.

Speaker #8: So, a lot of the elements there—we're just trying to be very thoughtful and very methodical, because the production rhythm of catering is very different than our traditional channels of in-restaurant and digital.

Speaker #8: It's highly concentrated, high volume. So we want to make sure that we have the load balancing thought through and correct, and that we have our operators positioned and our guest user experience up to the par of our other channels. Once we feel like we've got that in the position we feel very confident in, we'll be very excited to take advantage of the demand that's out there and launch the catering channel.

Brett Schulman: You know, once we feel like we've got that in a position we feel very confident in, we'll be very excited to take advantage of the demand that's out there, and launch the catering channel.

Speaker #2: Your next question comes from the line of Logan Reich from RBC Capital Markets. Your line is now open.

Operator: Your next question comes from the line of Logan Reich from RBC Capital Markets. Your line is now open.

Speaker #7: Hey, good evening, and thanks for taking my questions. Congrats on the really solid quarter. My question was on the Q1 to date performance—it seems like you guys have had a pretty material improvement from Q4.

Logan Reich: Hey, good evening, thanks for taking my questions, and congrats on a really solid quarter. My question was on the Q1 to-date performance. It seems like you guys have had a pretty material improvement from Q4, relative to some other players in the industry. Where do you guys think the outperformance is coming from, and what are the key drivers of the improvement you guys are seeing, year to date? If you could just quantify the impact of anything you're seeing on the weather, in January, that'd be helpful. Thanks.

Speaker #7: Relative to some other players in the industry, where do you guys think the outperformance is coming from? And what are the key drivers of the improvement you guys are seeing year to date?

Speaker #7: And then, if you could just quantify the impact of anything you're seeing on the weather in January, that'd be helpful. Thanks.

Speaker #8: Yeah, Logan. It's Brad. I'll take this one. As Tricia noted earlier, sequentially, we had a two-year improvement every quarter last year. And we tried to stress after Q2 and Q3 the idiosyncratic nature of some of the high hurdles we were lapping including the launch of Steak.

Brett Schulman: Yeah, Logan, it's Brad. I'll take this one. You know, as Tricia noted earlier, sequentially, we had a 2-year improvement every quarter last year. We tried to stress after Q2 and Q3, the idiosyncratic nature of some of the, you know, high hurdles we were lapping, including the launch of steak, as well as you had things like government shutdown and some other things I know other brands are dealing with. You know, I felt like at the time it was obfuscating, and we noted the underlying strength we were seeing in the brand. We talked about this as it relates to our new restaurant openings, our best class ever. We were seeing that strength underneath, and as we cycled through some of those short-term cyclical headwinds, we've seen those comps re-accelerate and reemerge.

Speaker #8: As well as you had things like government shutdown, and some other things I know other brands are dealing with. But I felt like, at the time, it was obfuscating, and we noted the underlying strength we were seeing in the brand.

Speaker #8: And we talked about this as it relates to our new restaurant openings, our best-class ever. So we were seeing that strength underneath. And as we cycled through some of those short-term cyclical headwinds, we've seen those comps re-accelerate and re-emerge.

Speaker #8: And I also think we've focused on delivering great value every day. And there was a very intense promotional discount environment in Q2, Q3, and somewhat Q4.

Brett Schulman: I also think, you know, we focused on delivering great value every day. There was a very intense promotional discount environment in Q2, Q3, and somewhat Q4. You know, I feel like there's a sense that, you know, there may have been some buying of transactions in other places, where, you know, consumers are gravitating back to where they find great bang for the buck as they're becoming increasingly discerning about where they're spending those dollars. We look at value from a holistic standpoint, the quality of the ingredients we're serving, the relevance of our Mediterranean cuisine, especially when you look at trends, including GLP-1, behavioral eating shifts.

Speaker #8: And I feel like there's a sense that there may have been some buying of transactions in other places. Where consumers are gravitating back to where they find great bang for the buck as they're becoming increasingly discerning about where they're spending those dollars.

Speaker #8: And we look at value from a holistic standpoint. The quality of the ingredients we're serving, the relevance of our Mediterranean cuisine, especially when you look at trends including GLP, behavioral eating shifts.

Speaker #8: Our unique cuisine, where taste and health unite and then delivered with convenience in a multi-channel format, with the experience we're delivering operationally and from a brand perspective—that is, long-term, a secular trend. As we celebrated our 15th anniversary last month, that hasn't changed over those 15 years and continues to build momentum.

Brett Schulman: Like, our unique cuisine where it tastes and healthy night, and then delivered with convenience in a multi-channel format with the experience we're delivering operationally and from a brand perspective, you know, that is long-term a secular trend as we celebrated our 15th anniversary last month, that hasn't changed over those 15 years and continues to build momentum. I think you're seeing that momentum re-accelerate as we've, you know, came out of last year and started this year. From a weather standpoint, I'd like to say, winter comes every year. Came a little harder this year. Our guidance and our quarter-to-date context includes all of the storms, including the recent blizzard here in the Northeast.

Speaker #8: And I think you're seeing that momentum re-accelerate as we've come out of last year and started this year. And from a weather standpoint, I like to say, winter comes every year.

Speaker #8: Came a little harder this year, but our guidance and our quarter-to-date context includes all of the storms including the recent blizzard here in the Northeast.

Speaker #2: Your next question comes from the line of Nick Satien from Mizuho Securities. Your line is now open.

Operator: Your next question comes from the line of Nick Setyan from Mizuho Securities. Your line is now open.

Speaker #9: Hey, thanks for taking the question. The digital mix is up like 200 basis points plus for three-quarters in a row now. And that's obviously predates the October revamp of loyalty.

Dennis Geiger: Hey, thanks for taking the question. The digital mix, you know, is up like 200 basis points plus for 3 quarters in a row now, and that obviously predates the October revamp of loyalty. Maybe just give us a peek of what's going on there under the hood. You know, the third party versus first party, average check, digital versus non-digital. Anything would be very helpful.

Nick Setyan: Hey, thanks for taking the question. The digital mix, you know, is up like 200 basis points plus for 3 quarters in a row now, and that obviously predates the October revamp of loyalty. Maybe just give us a peek of what's going on there under the hood. You know, the third party versus first party, average check, digital versus non-digital. Anything would be very helpful.

Speaker #9: So maybe just give us a peek of what's going on under the hood. The third-party versus first-party average check digital versus non-digital. Anything would be very helpful.

Speaker #8: Yeah. Hey, Nick. I won't get into the details of the check on delivery. What I will say is that we've gotten better at execution on our digital channels.

Brett Schulman: Yeah. Hey, Nick, I won't get into the details of the, the check on delivery. What I will say is that we've gotten better at execution on our digital channels. We always felt we had opportunity there. The KDS investment has helped as we improve our accuracy scores, as we improve our timeliness scores. Whether it's online order, whether it's first party or third party delivery, we've improved operationally, and that has led to, you know, increased transaction growth on those channels.

Speaker #8: We always felt we had opportunity there. The KDS investment has helped as we improve our accuracy scores, as we improve our timeliness scores. So whether it's online order, whether it's first-party or third-party delivery, we've improved operationally, and that has led to increased transaction growth on those channels.

Speaker #2: Your next question comes from the line of Jeffrey Bernstein from Barclays. Your line is now open.

Operator: Your next question comes from the line of Jeffrey Bernstein from Barclays. Your line is now open.

Speaker #9: Great. Thank you very much. Brad, just wanted to follow up on the AGM discussion. It seems like that's core to your focus on improving operations.

Jeffrey Bernstein: Great. Thank you very much. Brett, just wanted to follow up on the AGM discussion. It seems like that's core to your focus on improving operations. I think you mentioned you're now 60% complete in terms of filling those roles. Just wondering if you can give a little more color in terms of what you think are the primary benefits there, and maybe the time frame to complete what seems like a pretty key rollout. I think you mentioned, right, I mean, that's the biggest constraint to unit growth. Just wondering if you feel like you have the pipeline of managers to staff these new units as you especially ramp up to that 100 unit number per year. Thank you.

Speaker #9: I think you mentioned you're now 60% complete in terms of filling those roles. Just wondering if you can give a little bit more color in terms of what you think of the primary benefits there and maybe the timeframe to complete what seems like a pretty key rollout?

Speaker #9: And I think you mentioned—I mean, that's the biggest constraint to Uniqlo, so just wondering if you feel like you have the pipeline of managers to staff up these new units as you're especially ramping up to that 100-unit number per year.

Speaker #9: Thank you.

Speaker #8: Yeah. Thank you. We do feel like we've got the pipeline in place and the reinforced focus on it is to make sure we stay in front of that and stay ahead of it given our accelerated growth.

Brett Schulman: Yeah, thank you. We do feel like we've got the pipeline in place, and the reinforced focus on it is to make sure we stay in front of that and stay ahead of it, given our accelerated growth. I think the two big things the AGM role is meant to address and is addressing is, one, that broadening and deepening of role-ready leaders to fill that pipeline and open those new restaurants with operational integrity. Two, it goes to our third pillar's title. It's running great restaurants, every location, every shift. Having a more seasoned manager complement across all 14 day parts, seven lunch and seven dinners, every day of the week, and that really is the focus of that role. We're very pleased with the early results we've seen with restaurants that have that role.

Speaker #8: I think the two big things the AGM role is meant to address and is addressing is one, that broadening and deepening of role-ready leaders to fill that pipeline and open those new restaurants with operational integrity.

Speaker #8: And two, it goes to our third pillar's title. It's running great restaurants—every location, every shift. So, having a more seasoned manager complement across all 14 dayparts—7 lunches and 7 dinners—every day of the week.

Speaker #8: And that really is the focus of that role. And we're very pleased with the early results we've seen with restaurants that have that role.

Speaker #8: And the timing of completion of having those roles filled we expect to have that complete by the middle of the year.

Brett Schulman: The timing of completion of having those roles filled, we expect to have that complete by the middle of the year.

Speaker #2: Your next question comes from the line of Christine Cho from Goldman Sachs. Your line is now open.

Operator: Your next question comes from the line of Christine Cho from Goldman Sachs. Your line is now open.

Speaker #10: Great, thank you for taking my question. It's so great to see the loyalty program continuing to evolve. Now, with the two-year loyalty program being live for a few months, I'm wondering if you're seeing any shifts in guest behavior.

Christine Cho: Great. Thank you for taking my question. Great to see the loyalty program continuing to evolve. Now with the tiered loyalty program being live for a few months, wondering if you're seeing any shifts in the guest behavior, specifically any early evidence that the tiered structure is moving guests up the frequency curve, and that the loyalty is helping alleviate some of the pressures coming from the younger consumers you've highlighted previously? Thank you.

Speaker #10: Specifically, any early evidence that the tiered structure is moving guests up the frequency curve and that the loyalty is helping alleviate some of the pressures coming from the younger consumers you've highlighted previously.

Speaker #10: Thank you.

Speaker #11: We are seeing encouraging results as a result of the introduction of tiers, and we're seeing a modest increase in frequency. And it's driving the behaviors that we were hoping for.

[Company Representative] (CAVA Group): We are seeing encouraging results as a result of the introduction of tiers. We're seeing a modest increases in frequency, and it's driving the behaviors that we were hoping for, and that being engaging with guests earlier in their loyalty journey. We had a lot of high-frequency users in the past before we introduced tiers that didn't even really understand or value the benefits they were receiving. Engagement was not that significant. The introduction of the tiers has brought our guests into the brand sooner and driving up frequency and experiencing new items, whether it might be a pita chip promotion, or a drink promotion that will drive greater attachment over the long term as well.

Tricia Tolivar: We are seeing encouraging results as a result of the introduction of tiers. We're seeing a modest increases in frequency, and it's driving the behaviors that we were hoping for, and that being engaging with guests earlier in their loyalty journey. We had a lot of high-frequency users in the past before we introduced tiers that didn't even really understand or value the benefits they were receiving. Engagement was not that significant. The introduction of the tiers has brought our guests into the brand sooner and driving up frequency and experiencing new items, whether it might be a pita chip promotion, or a drink promotion that will drive greater attachment over the long term as well.

Speaker #11: And that being engaging with guests earlier and their loyalty journey. So we had a lot of high-frequency users in the past before we introduced tiers that didn't even really understand or value the benefits they were receiving.

Speaker #11: And there was—engagement was not all that significant. And so the introduction of the tiers has brought our guests into the brand sooner and is driving up frequency and experiencing new items, whether it might be a pita chip promotion or a drink promotion.

Speaker #11: That will drive greater attachment over the long term as well.

Speaker #2: Your next question comes from the line of Dennis Geider from UBS. Your line is now open.

Operator: Your next question comes from the line of Dennis Geiger from UBS. Your line is now open.

Speaker #12: Great, thanks, guys. I was curious if you could talk a little bit more at a high level about menu innovation looking ahead? Obviously, salmon is the big one—not to get too far ahead of ourselves.

Dennis Geiger: Great. Thanks, guys. I was curious if you could talk a little bit more at a high level about menu innovation looking ahead. Obviously, salmon, they're the big one, and not to get too far ahead of ourselves, but just as it relates to menu innovation going forward, you have the 10 pull moments and then some other innovation around that. Can you just talk about the philosophy going forward, what the pipeline maybe looks like at a high level? Anything to add on thinking about that menu innovation looking ahead?

Speaker #12: But just as it relates to menu innovation going forward, you have the 10-pole moments and then some other innovation around that. Can you just talk about the philosophy going forward, what the pipeline maybe looks like at a high level?

Speaker #12: Anything to add on thinking about that menu innovation looking ahead?

Speaker #8: Yeah. Hey, Dennis. It's Brad. Similar philosophy as what we've spoken to the last few years that 10-pole moment bracketed by a few seasonal moments.

Brett Schulman: Hey, Dennis, it's Brett. You know, similar philosophy as what we've spoken to the last few years, that ten pull moment bracket by a few seasonal moments. You saw us in this most recent quarter, in Q1, launch our or bring back our Roasted White Sweet Potatoes, which is a fan favorite. We launched a new greens mix, our Power Greens blend, which has been very popular, our Tangerine Aleppo juice, and our new Sumac Sour Cream + Onion Pita Chips, which are delicious. I encourage all of you on the call, if you haven't tried it yet, you gotta try them. So really building out our pita chip platform, as a flavor innovation platform, which has helped drive incremental attachment of our pita chips in snacking and side occasions.

Speaker #8: You saw us in this most recent quarter, in Q1, launch or bring back our roasted white sweet potatoes, which is a fan favorite. We launched a new greens mix—our Power Greens blend—which has been very popular.

Speaker #8: Our tangerine Aleppo juice, and our new sumac sour cream and onion pita chips, which are delicious. I encourage all of you on the call, if you haven't tried it yet.

Speaker #8: You got to try them. So really building out our pita chip platform as a flavor innovation platform which has helped drive incremental attachment of our pita chips and snacking and side occasions.

Speaker #8: As far as innovation in the protein category, salmon as we've talked about is launching at the end before the end of Q1. We have other proteins in the Stagegate process.

Brett Schulman: As far as innovation in the protein category, salmon, as we talked about, is launching at the end, before the end of Q1. We have other proteins in the stage gate process. We've had a market test of shrimp, our roasted garlic shrimp, so that is something we're also excited about, as well as a number of other proteins that are in development. There's a good pipeline of just the protein section, but we have many other opportunities from a category perspective, whether it's desserts, whether it's a complimentary beverage platform, whether it is. You know, we have our pita sandwiches. There's opportunities to innovate and elevate around our sandwich platform, as well as our base vehicle platform. You look at the grains category, I talked about the Power Greens in the greens category.

Speaker #8: We've had a market test of shrimp. Our roasted garlic shrimp. So that is something we're also excited about. As well as a number of other proteins that are in development.

Speaker #8: So there's a good pipeline of just the protein section. But we have many other opportunities from a category perspective whether it's desserts, whether it's a complementary beverage platform, whether it is we have our pita sandwiches.

Speaker #8: There's opportunities to innovate and elevate around our sandwich platform as well as our base vehicle platform. You look at the grains category. I talked about the power greens and the greens category.

Speaker #8: So all this comes together—it's hoppings, dips, and spreads—to create a powerful, holistic energy around innovation when you've got the ability to make 17.4-plus billion combinations and have unique ways through all these different categories to continue to drive excitement and interest and frequency.

Brett Schulman: All this comes together, toppings, dips and spreads, to create, you know, a powerful, holistic, energy around innovation, when you've got the ability to make 17.4+ billion combinations and have unique ways through all these different categories to continue to drive excitement, and interest and frequency.

Speaker #2: Your next question comes from the line of Chris Carroll from Quebec Capital Markets. Your line is now open.

Operator: Your next question comes from the line of Chris Carril from KeyBanc Capital Markets. Your line is now open.

Speaker #13: Hi. Thanks for taking the question. Maybe just following up on the topic of new restaurant performance and productivity. Can you maybe comment on what you're seeing from new restaurant performance in existing markets versus new markets?

Chris Carril: Hi, thanks for taking the question. Maybe just following up on the topic of new restaurant performance and productivity, can you maybe comment on what you're seeing from new restaurant performance in existing markets versus new markets? Curious if there's anything you're seeing in new versus existing market openings that's impacting how you're thinking about development strategy over the, you know, coming years. Thank you.

Speaker #13: And curious if there's anything you're seeing in new versus existing market openings that's impacting how you're thinking about development strategy over the coming years.

Speaker #13: Thank you.

Speaker #11: We're seeing strength across our categories of openings. So we look at existing growth, emerging, and greenfield markets. And we're seeing lifts in those restaurant openings across those categories.

[Company Representative] (CAVA Group): We're seeing strengths across our categories of openings. We look at existing growth, emerging and greenfield markets, and we're seeing lifts in those restaurant openings across those categories. Again, it really just a reflection of the power of the brand and the momentum behind Cava and Mediterranean, and a reflection of the increase in brand awareness. As we continue to open more restaurants, I would expect that that would continue to build on that development and opportunity. When we're thinking about the real estate strategy, we're always working with our real estate team. Jeff Gaul leads that for us. We don't have any significant changes, just keep focusing on finding great sites and giving us an opportunity to welcome Cava to more and more people across the country.

Tricia Tolivar: We're seeing strengths across our categories of openings. We look at existing growth, emerging and greenfield markets, and we're seeing lifts in those restaurant openings across those categories. Again, it really just a reflection of the power of the brand and the momentum behind Cava and Mediterranean, and a reflection of the increase in brand awareness. As we continue to open more restaurants, I would expect that that would continue to build on that development and opportunity. When we're thinking about the real estate strategy, we're always working with our real estate team. Jeff Gaul leads that for us. We don't have any significant changes, just keep focusing on finding great sites and giving us an opportunity to welcome Cava to more and more people across the country.

Speaker #11: So again, really just a reflection of the power of the brand and the momentum behind CAVA and Mediterranean. And a reflection of the increase in brand awareness.

Speaker #11: And as we continue to open more restaurants, I would expect that that would continue to build on that development and opportunity. So, when we're thinking about the real estate strategy, we're always working with our real estate team. Jeff Gal leads that for us.

Speaker #11: And we don't have any significant changes. Just keep focusing on finding great sites and giving us an opportunity to welcome CAVA to more and more people across the country.

Speaker #2: Your next question comes from the line of Jacob Ick and Phillips from Melleus Research. Your line is now open.

Operator: Your next question comes from the line of Jacob Aiken-Phillips from Melius Research. Your line is now open.

Speaker #14: Hey, everyone. Good afternoon. So just on throughput, as you've improved digital execution, you got salmon coming. Are you starting to bump up against peak capacity in any of the mature stores?

Jacob Aiken-Phillips: Hey, everyone. Good afternoon. Just on throughput, as you've improved digital execution, you got salmon coming, are you starting to bump up against peak capacity in any of the mature stores? Do you still think there's meaningful headroom to drive transactions without compromising speed and hospitality?

Speaker #14: Or do you still think there's meaningful headroom to drive transactions without compromising speed and hospitality?

Speaker #8: Yeah. Thanks, Jacob, for the question. No, we think we have meaningful room to grow transaction growth at peak hour. And I've talked a lot in the past that we're not going to push that gas pedal too hard, too fast, and overheat the engine.

Brett Schulman: Yeah, thanks, Jacob, for the question. No, we think we have meaningful room to grow transaction growth at peak hour. You know, I've talked a lot in the past that we're not gonna push that gas pedal too hard, too fast and overheat the engine. Especially when it's many of our guests' first time experiencing CAVA, let alone Mediterranean cuisine, and we want to give them the space to be able to have a great experience and not feel rushed. Now, having said that, we know in many of our locations, and urban locations in particular, we can get very long lines at lunch, and we don't want people intimidated and walking away. We continue to work on ways, whether it's our new labor deployment model we launched a year ago, that we continue to refine deployments.

Speaker #8: Especially when it's many of our guests' first-time experiencing CAVA, let alone Mediterranean cuisine. And we want to give them the space to be able to have a great experience and not feel rushed.

Speaker #8: Now, having said that, we know in many of our locations and urban locations in particular, we can get very long lines at lunch. And we don't want people intimidated and walking away.

Speaker #8: So we continue to work on ways, whether it's our new labor deployment model we launched a year ago, that we continue to refine deployments.

Speaker #8: Whether it's new equipment or new projects sold, design has a new layout on the line where they no longer turn around to get the greens.

Brett Schulman: Whether it's new equipment, our new Project Soul design has a new layout on the line, where they no longer turn around to get the greens, and the greens are in front of them on the line, saving steps and motion, to naturally help those lines flow better. At POS checkout, redesigning the POS area, so that we're not pushing our teams to rush people through, in an unnatural way. We think over time, there is a good amount of opportunity to drive transaction growth by improving speed, but not at the expense of service.

Speaker #8: And the greens are in front of them on the line, saving steps in motion. To naturally help those lines flow better at POS checkout, we're redesigning the POS area.

Speaker #8: So that we're not pushing our teams to rush people through in an unnatural way. But we think over time there is a good amount of opportunity to drive transaction growth by improving speed, but not at the expense of service.

Speaker #2: Your next question comes from the line of Todd Brooks from Benchmark. Your line is now open.

Operator: Your next question comes from the line of Todd Brooks from Benchmark. Your line is now open.

Speaker #15: Hey. Thanks for taking my question. Just wondering on KDS, now that we're about 80% rolled out, what's the curve of a restaurant getting the platform and really getting to those efficiencies around digital order accuracy that start to bend the needle with the consumer and driving digital mix higher?

Chris Carril: Hey, thanks for taking my question. Just wondering on KDS, now that we're about 80% rolled out, what's the curve of a restaurant getting the platform and really getting to those efficiencies around digital order accuracy that start to bend the needle with the consumer and driving digital mix higher? Then, I guess, what percent of the base has kind of reached that tipping point? Thanks.

Todd Brooks: Hey, thanks for taking my question. Just wondering on KDS, now that we're about 80% rolled out, what's the curve of a restaurant getting the platform and really getting to those efficiencies around digital order accuracy that start to bend the needle with the consumer and driving digital mix higher? Then, I guess, what percent of the base has kind of reached that tipping point? Thanks.

Speaker #15: And then, I guess, what percent of the base is kind of reached that tipping point? Thanks.

Speaker #11: I would say we're still evaluating that performance. But we do find that it's a fairly quick transition to the KDS system where you can see improvements overall.

[Company Representative] (CAVA Group): I'd say we're still evaluating that performance, but we do find that it's a fairly quick transition to the KDS system, where you can see improvements overall. One of the other features of KDS is that guests have more visibility into the status of the order. If they opt in for text notifications, we send that information on to the guests and then create opportunities to have a better guest experience overall. The other thing it's allows us to do is get better from an accuracy standpoint. Over time, the combination of those two things should drive continued improvement in guest experience and overall results.

Tricia Tolivar: I'd say we're still evaluating that performance, but we do find that it's a fairly quick transition to the KDS system, where you can see improvements overall. One of the other features of KDS is that guests have more visibility into the status of the order. If they opt in for text notifications, we send that information on to the guests and then create opportunities to have a better guest experience overall. The other thing it's allows us to do is get better from an accuracy standpoint. Over time, the combination of those two things should drive continued improvement in guest experience and overall results.

Speaker #11: One of the other features of KDS is that guests have more visibility into the status of the order. So if they opt in for text notifications, we send that information on to the guests.

Speaker #11: And then create opportunities to have a better guest experience overall. The other thing it allows us to do is get better from an accuracy standpoint.

Speaker #11: So over time, the combination of those two things should drive continued improvement in guest experience. And overall results. And so I would say with the slope that's impacting it, but not an outsized driver of overall traffic driving.

[Company Representative] (CAVA Group): I would say with the slope that's impacting it, but not an outsized driver of overall traffic driving, and it's certainly not something that we've layered in significantly in our guidance as we think about it going forward.

Tricia Tolivar: I would say with the slope that's impacting it, but not an outsized driver of overall traffic driving, and it's certainly not something that we've layered in significantly in our guidance as we think about it going forward.

Speaker #11: And it's certainly not something that we've layered in significantly in our guidance as we think about it going forward.

Speaker #2: Our last question comes from the line of Brian Vacaro from Raymond James. Your line is now open.

Operator: Our last question comes from the line of Brian Vaccaro from Raymond James. Your line is now open.

Speaker #16: Hi. Thanks. Just a quick one on loyalty for me. And sorry if I missed it. But how many active users were in the program, either current or exiting 25?

Brian Vaccaro: Hi, thanks. Just a quick one on loyalty for me, and sorry if I missed it, but how many active users were in the program, either current or exiting 25? Could you frame the percent of sales that are being driven by the program and how that might compare to prior year? Thank you.

Speaker #16: And could you frame the percent of sales that are being driven by the program, and how that might compare to the prior year? Thank you.

Speaker #11: It drives about a third of our overall sales through the loyalty program. And we haven't given a number on active users in the program.

[Company Representative] (CAVA Group): It drives about a third of our overall sales through the loyalty program. We haven't given a number on active users in the program. We're pleased with the progress we're making, and we'll continue to enhance the program itself, and keep moving forward from there.

Tricia Tolivar: It drives about a third of our overall sales through the loyalty program. We haven't given a number on active users in the program. We're pleased with the progress we're making, and we'll continue to enhance the program itself, and keep moving forward from there.

Speaker #11: We're pleased with the progress we're making. And we'll continue to enhance the program itself and keep moving forward from there.

Speaker #2: There are no further questions at this time. I will now turn the call over to our Co-Founder and CEO, Brett Schulman. Sir, please continue.

Operator: There are no further questions at this time. I will now turn the call over to our Co-founder and CEO, Brett Schulman. Sir, please continue.

Speaker #8: Thanks for joining today. Before we wrap, I want to take a moment to thank our entire team for their dedication and commitment. 2025 was a milestone year for CAVA.

Brett Schulman: Thanks for joining today. Before we wrap, I want to take a moment to thank our entire team for their dedication and commitment. 2025 was a milestone year for CAVA, it was only possible because of the team members who bring our mission of heart, health, and humanity to food, to life every day. As we look ahead, we're energized by the opportunity in front of us and confident in the foundation we've built for the next phase of growth. We look forward to sharing our progress and speaking with you again in the spring.

Speaker #8: And it was only possible because of the team members who bring our mission of heart, health, and humanity to food to life every day.

Speaker #8: As we look ahead, we're energized by the opportunity in front of us and confident in the foundation we've built for the next phase of growth.

Speaker #8: We look forward to sharing our progress and speaking with you again in the spring.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Q4 2025 Cava Group Inc Earnings Call

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