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CAVA (Cava Group) Degree of Operating Leverage : 2.67 (As of Mar. 2025)


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What is Cava Group Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Cava Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 2.67. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Cava Group's Degree of Operating Leverage or its related term are showing as below:

CAVA's Degree of Operating Leverage is ranked worse than
62.9% of 345 companies
in the Restaurants industry
Industry Median: 1.28 vs CAVA: 2.67

Cava Group Degree of Operating Leverage Historical Data

The historical data trend for Cava Group's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cava Group Degree of Operating Leverage Chart

Cava Group Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
- -4.25 -3.36 2.91

Cava Group Quarterly Data
Dec21 Apr22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -14.61 5.72 3.58 2.91 2.67

Competitive Comparison of Cava Group's Degree of Operating Leverage

For the Restaurants subindustry, Cava Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cava Group's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Cava Group's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Cava Group's Degree of Operating Leverage falls into.


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Cava Group Degree of Operating Leverage Calculation

Cava Group's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 68.604 (Mar. 2025) / 36.945 (Mar. 2024) - 1 )/( 1036.533 (Mar. 2025) / 784.623 (Mar. 2024) - 1 )
=0.8569/0.3211
=2.67***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Cava Group  (NYSE:CAVA) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Cava Group Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Cava Group's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Cava Group Business Description

Traded in Other Exchanges
N/A
Address
14 Ridge Square NW, Suite 500, Washington, DC, USA, 20016
Cava Group Inc owns and operates a chain of restaurants. It is the category-defining Mediterranean fast-casual restaurant brand, bringing together healthful food and bold, satisfying flavors at scale. The company's dips, spreads, and dressings are centrally produced and sold in grocery stores. The company's operations are conducted as two reportable segments: CAVA and Zoes Kitchen. The company generates all of its revenue from the CAVA segment.
Executives
Theodoros Xenohristos director C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Jennifer Somers officer: Chief Operations Officer C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Adam David Phillips officer: Chief Accounting Officer C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Brett Schulman director, 10 percent owner, officer: CEO and President C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Kenneth Robert Bertram officer: CLO & Secretary 3404 CHOCO CHASE, MECHNICSBURG NY 17055
Tricia K. Tolivar officer: Chief Financial Officer C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Ronald M Shaich director, 10 percent owner C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Karen Kochevar director C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Artal International S.c.a. director, 10 percent owner VALLEY PARK, 44, RUE DE LA VALLEE, LUXEMBOURG N4 L-2661
James D White director C/O CAVA GROUP, INC., 202-400-2920 14 RIDGE SQUARE NW, SUITE 5, WASHINGTON DC 20016
David Bosserman director C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Philippe Amouyal director C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Todd Klein director C/O CAVA GROUP, INC., 14 RIDGE SQUARE NW, SUITE 500, WASHINGTON DC 20016
Swan & Legend Fund 4 Gp, Llc 10 percent owner 108 LOUDOUN ST. SW, LEESBURG VA 20175
Todd D Klein director 1717 RHODE ISLAND AVENUE, N.W., 10TH FLOOR, WASHINGTON DC 20036