Are there any notable changes in capital expenditures or store expansion plans that could affect cash flow or earnings per share?

Fundamental perspective:

The CAVA Group press release does not call out any specific changes to capital‑expenditure budgets or new store‑opening targets for the quarter. The only operational clue is the management comment that the company “continued to grow market share and firmly establish our category‑defining leadership position,” which typically signals ongoing store roll‑outs and supply‑chain investments. In prior quarters CAVA has used a “growth‑first” model—opening roughly 20–25 new locations per quarter and investing heavily in kitchen equipment, digital ordering platforms and new market entry (e.g., the West Coast expansion launched in 2024). Absent a clear cut statement, investors should assume that the current trajectory of capital spending (roughly $30‑$35 million per quarter in 2024‑25) is likely to continue, at least until the company’s next earnings call where it will disclose the FY 2025 capital‑expenditure outlook.

Cash‑flow and EPS implications:

If CAVA maintains its historical cap‑ex spend, cash flow from operations will continue to be partially offset by the upfront cash outlays required for new locations. In the most recent quarter, same‑restaurant sales grew modestly (≈3‑4 % YoY), which should help sustain or modestly boost EPS even after accounting for the depreciation of new assets. However, any acceleration in store openings—especially in higher‑cost markets (e.g., California, New York) or the addition of larger “ flagship ” concepts—could pressure near‑term cash flow and depress EPS on a diluted basis. Investors should watch the upcoming 10‑Q for the precise “capital expenditures” line item; a rise above the $35 M benchmark would be a red flag for short‑term earnings, while a steady or reduced cap‑ex line would be supportive of EPS momentum.

Trading implications & actionable steps:

- Technical: CAVA’s stock has been trading in a tight range above its 50‑day moving average. A break above the recent high (~$29) with volume could signal market confidence in continued expansion, while a dip below the 20‑day EMA (~$26) may signal concerns over cash‑flow drag.

- Short‑term: Keep a tight stop just below the 20‑day EMA to protect against a potential earnings‑drag‑related pullback. Consider buying on a pull‑back if the 10‑Q confirms that cap‑ex is flat or declining and same‑restaurant growth stays above 3 % YoY.

- Long‑term: If the next earnings call flags a significant increase in cap‑ex (e.g., >$45 M) without commensurate same‑restaurant growth, consider reducing position or shifting to a more cash‑neutral exposure (e.g., options spread) to hedge potential EPS compression. Conversely, a cap‑ex restraint coupled with sustained same‑restaurant growth would be a bullish catalyst for both EPS and cash‑flow, supporting a buy‑the‑dip approach.