The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited interim condensed consolidated financial statements and the related notes included elsewhere in this Form 10-Q and our Annual Report on Form 10-K for the year ended December 28, 2025 (our “2025 Annual Report”). In addition to historical information, this discussion and analysis contains forward-looking statements based on current expectations that involve risks, uncertainties, and other factors outside the Company’s control, as well as assumptions, such as our plans, objectives, expectations, and intentions. Our actual results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors, including those described under the sections entitled “Cautionary Statement Concerning Forward-Looking Statements” above and “Risk Factors” in our 2025 Annual Report. Overview CAVA Group, Inc. (together with its wholly owned subsidiaries, referred to as the “Company,” “CAVA,” “we,” “us,” and “our” unless specified otherwise) was formed as a Delaware corporation in 2015, and prior to that, the first CAVA restaurant opened in 2011 in Bethesda, Maryland. The Company is headquartered in Washington, D.C. and, as of July 12, 2026, the Company operated 476 fast-casual CAVA Restaurants in 29 states and Washington, D.C. The Company’s authentic Mediterranean cuisine unites taste and health, with a menu that features chef-curated and customizable bowls and pitas. The Company centrally produces dips, spreads, and certain dressing bases for use in its restaurants while also selling its dips, spreads, and prepared dressings in grocery stores. Segments The Company’s operations are conducted as two operating segments: CAVA and CAVA Foods. CAVA includes the operations of all company-owned CAVA restaurants. CAVA Foods includes the production of dips, spreads, and certain dressing bases used in CAVA restaurants as well as sales from the Company’s CPG business. These segments were determined on the same basis that the Company’s CEO, who is the CODM, manages, evaluates, and makes key decisions regarding the business. The CODM does not manage the Company on a consolidated basis. CAVA Foods is below quantitative thresholds for segment reporting purposes, resulting in CAVA being the Company’s one reportable segment. The Company’s CPG operations are included in Other non-reportable segment. See Item 1. “Financial Statements,” Note 12 (Segment Reporting) for more information. Key Performance Measures In assessing the performance of our business, in addition to considering a variety of measures in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), our management team also considers a variety of other key performance measures, including non-GAAP measures. The key performance measures used by our management for determining how our business is performing are detailed in the table below. We believe that these key performance measures provide useful information to users of our financial statements in understanding and evaluating our results of operations in the same manner as our management team. The presentation of these key performance measures, including Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures, is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. See “Non-GAAP Financial Measures” below. 16 Table of Contents The following table sets forth our key performance measures: Twelve Weeks Ended Twenty-Eight Weeks Ended ($ in thousands) July 12, 2026 July 13, 2025 Change July 12, 2026 July 13, 2025 Change CAVA Revenue $ 365,433 $ 278,249 $ 87,184 $ 799,825 $ 606,731 $ 193,094 Same Restaurant Sales 9.0 % 2.1 % 6.9 % 9.4 % 6.6 % 2.8 % AUV $ 3,088 $ 2,939 $ 149 N/A N/A N/A CAVA Restaurant-Level Profit $ 93,812 $ 73,262 $ 20,550 $ 202,664 $ 155,567 $ 47,097 CAVA Restaurant-Level Profit Margin 25.7 % 26.3 % (0.6) % 25.3 % 25.6 % (0.3) % Net New CAVA Restaurant Openings 17 16 1 37 31 6 Digital Revenue Mix 39.0 % 37.3 % 1.7 % 39.5 % 37.6 % 1.9 % Net income $ 23,017 $ 18,368 $ 4,649 $ 46,583 $ 44,075 $ 2,508 Adjusted EBITDA1 $ 54,716 $ 42,104 $ 12,612 $ 116,450 $ 86,954 $ 29,496 Net income margin 6.2 % 6.5 % (0.3) % 5.8 % 7.2 % (1.4) % Adjusted EBITDA margin1 14.9 % 15.0 % (0.1) % 14.4 % 14.2 % 0.2 % __________________ 1 See “Non-GAAP Financial Measures” below for a discussion of Adjusted EBITDA and Adjusted EBITDA margin and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of revenue. CAVA Restaurants and Net New CAVA Restaurant Openings The following table details CAVA Restaurant unit data: Twelve Weeks Ended Twenty-Eight Weeks Ended July 12, 2026 July 13, 2025 July 12, 2026 July 13, 2025 CAVA Restaurants Beginning of period 459 382 439 367 New CAVA Restaurant openings 17 16 38 31 Permanent closure — — (1) — End of period 476 398 476 398 Results of Operations Our results of operations, on a consolidated basis and by segment, for the twelve and twenty-eight weeks ended July 12, 2026 and July 13, 2025, are set forth below. Comparison of the twelve weeks ended July 12, 2026 and July 13, 2025 Consolidated Results The following table summarizes our consolidated results of operations: Twelve Weeks Ended (in thousands) July 12, 2026 July 13, 2025 Change $ % of Revenue $ % of Revenue $ % Revenue $ 368,436 100.0 % $ 280,615 100.0 % $ 87,821 31.3 % Operating expenses: Restaurant operating costs (excluding depreciation and amortization) Food, beverage, and packaging 110,502 30.0 82,950 29.6 27,552 33.2 Labor 92,401 25.1 69,496 24.8 22,905 33.0 Occupancy 23,065 6.3 18,791 6.7 4,274 22.7 17 Table of Contents Other operating expenses 46,886 12.7 34,697 12.4 12,189 35.1 Total restaurant operating expenses 272,854 74.1 205,934 73.4 66,920 32.5 General and administrative expenses 39,800 10.8 32,051 11.4 7,749 24.2 Depreciation and amortization 20,966 5.7 16,815 6.0 4,151 24.7 Pre-opening costs 6,741 1.8 5,096 1.8 1,645 32.3 Impairment and asset disposal costs 1,229 0.3 1,074 0.4 155 14.4 Total operating expenses 341,590 92.7 260,970 93.0 80,620 30.9 Income from operations 26,846 7.3 19,645 7.0 7,201 36.7 Interest income, net (3,293) (0.9) (3,581) (1.3) 288 (8.0) Other income, net (439) (0.1) (474) (0.2) 35 (7.4) Income before taxes 30,578 8.3 23,700 8.4 6,878 29.0 Provision for income taxes 7,561 2.1 5,332 1.9 2,229 41.8 Net income $ 23,017 6.2 % $ 18,368 6.5 % $ 4,649 25.3 % Revenue, Food, beverage, and packaging, Labor, Occupancy, and Other operating expenses: The increases in Revenue, Food, beverage, and packaging, Labor, Occupancy, and Other operating expenses are primarily driven by the growth of our CAVA segment. Refer to “CAVA Segment Results” below for more information. General and administrative expenses: The increase in general and administrative expenses was primarily due to investments to support future growth and higher equity-based compensation, partially offset by costs associated with our CAVA Connect conference in the prior year quarter. As a percentage of revenue, general and administrative expenses decreased primarily due to leverage from higher sales, the timing of our CAVA Connect conference in the prior year quarter, and the timing of performance-based incentive compensation, partially offset by investments to support future growth. Depreciation and amortization: The increase in depreciation and amortization was primarily driven by the addition of assets from the 94 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 13, 2025 and technology improvements. Pre-opening costs: The increase in pre-opening costs was due to the volume of new CAVA restaurants under construction and additional investments in new restaurant openings to support increased volumes. Interest income, net: The decrease in interest income, net, was due to lower interest rates on investments in fixed income debt securities and money market funds in the current year, partially offset by higher balances in these investments. Provision for income taxes: The effective tax rate for the twelve weeks ended July 12, 2026 and July 13, 2025 was 24.7% and 22.5%, respectively, which includes the impact of a $2.0 million and $1.7 million reduction to income tax expense associated with equity-based compensation, respectively. 18 Table of Contents CAVA Segment Results The following table summarizes the results of the CAVA segment: Twelve Weeks Ended July 12, 2026 July 13, 2025 Change (in thousands) $ % of Revenue $ % of Revenue $ % Revenue $ 365,433 100.0 % $ 278,249 100.0 % $ 87,184 31.3 % Restaurant operating expenses (excluding depreciation and amortization) Food, beverage, and packaging 109,496 30.0 82,210 29.5 27,286 33.2 Labor 92,401 25.3 69,496 25.0 22,905 33.0 Occupancy 23,065 6.3 18,791 6.8 4,274 22.7 Other operating expenses 46,659 12.8 34,490 12.4 12,169 35.3 Total restaurant operating expenses 271,621 74.3 204,987 73.7 66,634 32.5 Restaurant-level profit $ 93,812 25.7 % $ 73,262 26.3 % $ 20,550 28.1 % CAVA Revenue: The increase in CAVA Revenue was primarily due to a $64.0 million increase from the 94 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 13, 2025. In addition, the increase in CAVA Revenue was driven by an increase in Same Restaurant Sales of 9.0%, which consisted of a 5.3% increase from Guest Traffic and a 3.7% increase from menu price and product mix. CAVA food, beverage, and packaging: The increase in CAVA food, beverage, and packaging was primarily due to a $19.9 million increase from the 94 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 13, 2025. The remainder of the increase was primarily due to an increase in Same Restaurant Sales of 9.0%. As a percentage of CAVA Revenue, CAVA food, beverage, and packaging increased primarily due to input costs associated with the launch of our Pomegranate Glazed Salmon on April 20, 2026, partially offset by improved mix. CAVA labor: The increase in CAVA labor was primarily due to the 94 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 13, 2025 and an increase in Same Restaurant Sales of 9.0%. The remainder of the increase was primarily due to the impact of higher average hourly wages of approximately 3%, which includes the expansion of our Assistant General Manager role. As a percentage of CAVA Revenue, CAVA labor increased due to the aforementioned incremental wage investments, partially offset by the impact of higher sales. CAVA occupancy: The increase in CAVA occupancy was primarily due to the 94 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 13, 2025. As a percentage of CAVA Revenue, CAVA occupancy decreased primarily due to operating leverage associated with higher sales. CAVA other operating expenses: The increase in CAVA other operating expenses was primarily due to the 94 Net New CAVA Restaurant Openings during or subsequent to the twelve weeks ended July 13, 2025 and an increase in Same Restaurant Sales of 9.0%. As a percentage of CAVA Revenue, CAVA other operating expenses increased due to a higher mix of third-party delivery. 19 Table of Contents Other Results The following table summarizes remaining activity related to our CPG operations and the production of dips, spreads, and certain dressing bases used in CAVA restaurants: Twelve Weeks Ended July 12, 2026 July 13, 2025 Change (in thousands) $ % of Revenue $ % of Revenue $ % Revenue $ 3,003 100.0 % $ 2,366 100.0 % $ 637 26.9 % Food, beverage, and packaging 1,006 33.5 740 31.3 266 35.9 Other operating expenses 227 7.6 207 8.7 20 9.7 The increase in revenue noted above was primarily due to higher CPG sales. As a percentage of revenue, food, beverage, and packaging increased due to higher freight costs, partially offset by lower raw material input costs. 20 Table of Contents Comparison of the twenty-eight weeks ended July 12, 2026 and July 13, 2025 Consolidated Results The following table summarizes our consolidated results of operations: Twenty-Eight Weeks Ended (in thousands) July 12, 2026 July 13, 2025 Change $ % of Revenue $ % of Revenue $ % Revenue $ 806,706 100.0 % $ 612,441 100.0 % $ 194,265 31.7 % Operating expenses: Restaurant operating costs (excluding depreciation and amortization) Food, beverage, and packaging 238,180 29.5 180,509 29.5 57,671 31.9 Labor 203,952 25.3 154,058 25.2 49,894 32.4 Occupancy 52,922 6.6 43,199 7.1 9,723 22.5 Other operating expenses 104,878 13.0 75,931 12.4 28,947 38.1 Total restaurant operating expenses 599,932 74.4 453,697 74.1 146,235 32.2 General and administrative expenses 91,390 11.3 73,445 12.0 17,945 24.4 Depreciation and amortization 46,432 5.8 37,626 6.1 8,806 23.4 Pre-opening costs 12,902 1.6 9,577 1.6 3,325 34.7 Impairment and asset disposal costs 3,947 0.5 2,741 0.4 1,206 44.0 Total operating expenses 754,603 93.5 577,086 94.2 177,517 30.8 Income from operations 52,103 6.5 35,355 5.8 16,748 47.4 Interest income, net (7,375) (0.9) (8,198) (1.3) 823 (10.0) Other income, net (1,139) (0.1) (501) (0.1) (638) 127.3 Income before taxes 60,617 7.5 44,054 7.2 16,563 37.6 Provision for (benefit from) income taxes 14,034 1.7 (21) — 14,055 N/M Net income $ 46,583 5.8 % $ 44,075 7.2 % $ 2,508 5.7 % __________________ N/M data not meaningful Revenue, Food, beverage, and packaging, Labor, Occupancy, and Other operating expenses: The increases in Revenue, Food, beverage, and packaging, Labor, Occupancy, and Other operating expenses are primarily driven by the growth of our CAVA segment. Refer to “CAVA Segment Results” below for more information. General and administrative expenses: The increase in general and administrative expenses was primarily due to investments to support future growth, the timing of performance-based incentive compensation, and higher equity-based compensation, partially offset by costs associated with our CAVA Connect conference in the prior year quarter. As a percentage of revenue, general and administrative expenses decreased primarily due to leverage from higher sales, partially offset by investments to support future growth. Depreciation and amortization: The increase in depreciation and amortization was primarily driven by the addition of assets from the 109 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 13, 2025 and technology improvements. 21 Table of Contents Pre-opening costs: The increase in pre-opening costs was due to a higher volume of new CAVA restaurants under construction and additional investments in new restaurant openings to support increased volumes. Impairment and asset disposal costs: The increase in impairment and asset disposal costs was primarily due to impairment charges related to certain operating lease assets and property and equipment, net. Interest income, net: The decrease in interest income, net, was due to lower interest rates on investments in fixed income debt securities and money market funds in the current year period, partially offset by higher balances in these investments. Other income, net: The increase in other income, net, was primarily due to the fair value change recognized on a convertible promissory note described in Item 1, Financial Statements, Note 3 (Investments). Provision for (benefit from) income taxes: The effective tax rate for the twenty-eight weeks ended July 12, 2026 was 23.2%, which includes a $4.2 million reduction to income tax expense associated with equity-based compensation. The effective tax rate for the twenty-eight weeks ended July 13, 2025 was not meaningful due to a $12.4 million reduction to income tax expense associated with equity-based compensation. CAVA Segment Results The following table summarizes the results of the CAVA segment: Twenty-Eight Weeks Ended July 12, 2026 July 13, 2025 Change (in thousands) $ % of Revenue $ % of Revenue $ % Revenue $ 799,825 100.0 % $ 606,731 100.0 % $ 193,094 31.8 % Restaurant operating expenses (excluding depreciation and amortization) Food, beverage, and packaging 235,914 29.5 178,434 29.4 57,480 32.2 Labor 203,952 25.5 154,058 25.4 49,894 32.4 Occupancy 52,922 6.6 43,199 7.1 9,723 22.5 Other operating expenses 104,373 13.0 75,473 12.4 28,900 38.3 Total restaurant operating expenses 597,161 74.7 451,164 74.4 145,997 32.4 Restaurant-level profit $ 202,664 25.3 % $ 155,567 25.6 % $ 47,097 30.3 % CAVA Revenue: The increase in CAVA Revenue was primarily due to a $137.7 million increase from the 109 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 13, 2025. In addition, the increase in CAVA Revenue was driven by an increase in Same Restaurant Sales of 9.4%, which consisted of a 6.1% increase from Guest Traffic and a 3.3% increase from menu price and product mix. CAVA food, beverage, and packaging: The increase in CAVA food, beverage, and packaging was primarily due to a $42.0 million increase from the 109 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 13, 2025. The remainder of the increase was primarily due to an increase in Same Restaurant Sales of 9.4%. As a percentage of CAVA Revenue, CAVA food, beverage, and packaging increased primarily due to input costs associated with the launch of our Pomegranate Glazed Salmon on April 20, 2026, partially offset by improved mix. 22 Table of Contents CAVA labor: The increase in CAVA labor was primarily due to the 109 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 13, 2025 and an increase in Same Restaurant Sales of 9.4%. The remainder of the increase was primarily due to the impact of higher average hourly wages of approximately 3%, which includes the expansion of our Assistant General Manager role. As a percentage of CAVA Revenue, CAVA labor increased due to the aforementioned incremental wage investments, partially offset by the impact of higher sales. CAVA occupancy: The increase in CAVA occupancy was primarily due to the 109 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 13, 2025. As a percentage of CAVA Revenue, CAVA occupancy decreased primarily due to operating leverage associated with higher sales. CAVA other operating expenses: The increase in CAVA other operating expenses was primarily due to the 109 Net New CAVA Restaurant Openings during or subsequent to the twenty-eight weeks ended July 13, 2025 and an increase in Same Restaurant Sales of 9.4%. As a percentage of CAVA Revenue, CAVA other operating expenses increased due to a higher mix of third-party delivery and other individually insignificant items. Other Results The following table summarizes remaining activity related to CPG operations and the production of dips, spreads, and certain dressing bases used in CAVA restaurants: Twenty-Eight Weeks Ended July 12, 2026 July 13, 2025 Change (in thousands) $ % of Revenue $ % of Revenue $ % Revenue $ 6,881 100.0 % $ 5,710 100.0 % $ 1,171 20.5 % Food, beverage, and packaging 2,266 32.9 2,075 36.3 191 9.2 Other operating expenses 505 7.3 458 8.0 47 10.3 The increase in revenue noted above was primarily due to higher CPG sales. As a percentage of revenue, food, beverage, and packaging decreased primarily due to lower raw material input costs, partially offset by higher freight costs. Non-GAAP Financial Measures In addition to our consolidated financial statements, which are prepared in accordance with GAAP, we present Adjusted EBITDA and Adjusted EBITDA margin as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. We believe these non-GAAP financial measures assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our operating performance. Management believes Adjusted EBITDA and Adjusted EBITDA margin are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses Adjusted EBITDA and Adjusted EBITDA margin to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide. Adjusted EBITDA and Adjusted EBITDA margin are not recognized terms under GAAP and should not be considered as alternatives to net income or net income margin as measures of financial performance, or cash provided by operating activities as measures of liquidity, or any other performance measure derived in accordance with GAAP. Additionally, these measures are not intended to be measures of cash flow available for management’s discretionary use, as they do not consider certain cash requirements such as interest payments, tax payments, and debt service requirements. Because not all companies use identical calculations, the presentation of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. 23 Table of Contents Adjusted EBITDA and Adjusted EBITDA margin measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations are: •Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments; •Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; •Adjusted EBITDA does not reflect financing activities of our business; •Adjusted EBITDA does not reflect period to period changes in taxes, income tax expense or the cash necessary to pay income taxes; •Adjusted EBITDA does not reflect the impact of earnings or cash charges resulting from matters we consider not to be indicative of our ongoing operations; •although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and •other companies in our industry may calculate Adjusted EBITDA and Adjusted EBITDA margin differently than we do, limiting their usefulness as comparative measures. Because of these limitations, Adjusted EBITDA and Adjusted EBITDA margin should not be considered as measures of discretionary cash available to invest in business growth or to reduce any applicable indebtedness. The following table provides a reconciliation of net income to Adjusted EBITDA and net income margin to Adjusted EBITDA margin: Twelve Weeks Ended Twenty-Eight Weeks Ended (in thousands) July 12, 2026 July 13, 2025 July 12, 2026 July 13, 2025 Net income $ 23,017 $ 18,368 $ 46,583 $ 44,075 Non-GAAP Adjustments Interest income, net (3,293) (3,581) (7,375) (8,198) Provision for (benefit from) income taxes 7,561 5,332 14,034 (21) Depreciation and amortization 20,966 16,815 46,432 37,626 Equity-based compensation 5,675 4,570 13,423 11,232 Other income, net (439) (474) (1,139) (501) Impairment and asset disposal costs 1,229 1,074 3,947 2,741 Executive transition costs — — 545 — Adjusted EBITDA $ 54,716 $ 42,104 $ 116,450 $ 86,954 Revenue $ 368,436 $ 280,615 $ 806,706 $ 612,441 Net income margin 6.2 % 6.5 % 5.8 % 7.2 % Adjusted EBITDA margin 14.9 % 15.0 % 14.4 % 14.2 % Additional Factors Affecting Our Business In July 2026, U.S. public health authorities identified a multistate outbreak of cyclosporiasis associated with iceberg lettuce. No ingredients in our supply chain have been implicated in the outbreak; however, broader consumer concerns related to the outbreak have adversely impacted our revenue during the third quarter to date. While the impact appears to be moderating, the duration and extent of any remaining impact remain uncertain. Liquidity and Capital Resources We assess our liquidity in terms of our ability to generate adequate amounts of cash to meet our current and expected future operating needs. Our expected primary uses of cash on a short- and long-term basis are for the expansion of our restaurant base, working capital, and other capital expenditures. We believe that cash provided by operating activities and existing cash on hand, together with amounts available under our Credit Facility, will be sufficient to satisfy our anticipated cash requirements for the next twelve months and 24 Table of Contents foreseeable future, including our expected capital expenditures for expansion of our CAVA restaurant base, operating lease obligations, and working capital requirements. Our sources of liquidity could be affected by general macroeconomic conditions, as well as tariff policy and geopolitical tensions between the United States and foreign countries, as well as the factors described under the section entitled “Risk Factors” in our 2025 Annual Report. Depending on the severity and direct impact of these factors on us, we may not be able to secure additional financing on acceptable terms, or at all. Cash Overview We had cash and cash equivalents of $322.8 million and $282.9 million as of July 12, 2026 and December 28, 2025, respectively. In addition, we had investments in fixed income debt securities of $112.8 million and $110.1 million as of July 12, 2026 and December 28, 2025, respectively. For the twenty-eight weeks ended July 12, 2026, our operations were funded from cash flows from operations. Cash Flows The following table summarizes our cash flows: Twenty-Eight Weeks Ended Change (in thousands) July 12, 2026 July 13, 2025 $ % Net cash provided by operating activities $ 134,520 $ 98,895 $ 35,625 36.0 % Net cash used in investing activities (97,548) (177,419) 79,871 (45.0) Net cash provided by financing activities 2,874 2,576 298 11.6 Net change in cash and cash equivalents $ 39,846 $ (75,948) $ 115,794 (152.5) % Operating Activities: The increase in net cash provided by operating activities was primarily due to improved operating performance and favorable working capital changes primarily associated with performance-based incentive compensation. Investing Activities: The decrease in net cash used in investing activities was primarily due to launching an investment portfolio of fixed income debt securities in the first quarter of fiscal 2025 to optimize returns on our cash balance, partially offset by higher capital expenditures related to future new CAVA restaurant openings and an investment in a convertible promissory note described in Item 1, Financial Statements, Note 3 (Investments). Financing Activities: The increase in net cash provided by financing activities was primarily due to increased proceeds from shares purchased under equity plans, partially offset by fees associated with the refinancing of our credit agreement. Material Cash Commitments There have been no significant changes to the material cash commitments as disclosed in our 2025 Annual Report, other than those payments made in the ordinary course of business. Credit Facility Refer to Item 1, Financial Statements, Note 6 (Debt), for a description of our Credit Facility. Critical Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available as of the date of the consolidated financial statements; therefore, actual results could differ from those estimates. We had no significant changes to our critical accounting estimates as described in our 2025 Annual Report. 25 Table of Contents Recent Accounting Pronouncements Refer to Item 1, Financial Statements, Note 1 (Nature of Operations and Basis of Presentation).