{"id":42500,"date":"2025-08-13T11:35:27","date_gmt":"2025-08-13T11:35:27","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/13\/cava-shares-plunge-22-after-trimming-sales-outlook-amid-economic-uncertainty\/"},"modified":"2025-08-13T11:35:27","modified_gmt":"2025-08-13T11:35:27","slug":"cava-shares-plunge-22-after-trimming-sales-outlook-amid-economic-uncertainty","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/13\/cava-shares-plunge-22-after-trimming-sales-outlook-amid-economic-uncertainty\/","title":{"rendered":"Cava shares plunge 22% after trimming sales outlook amid economic uncertainty"},"content":{"rendered":"
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Shares of Cava Group Inc. tumbled by more than 22% in pre-market trading on Wednesday, extending steep after-hours losses from Tuesday, after the Mediterranean fast-casual chain lowered its full-year same-store sales forecast. <\/p>\n

The move comes as the company faces challenging comparisons with last year\u2019s performance<\/a> and navigates what its chief executive described as a \u201cfog\u201d over the US economy.<\/p>\n

The steep selloff has decreased the share price by close to 27% YTD.<\/p>\n

CEO cites unpredictable economic backdrop<\/h2>\n

Chief Executive Brett Schulman said in an interview on Tuesday that shifting economic conditions, including fluctuating tariff policies, had left consumers uncertain.<\/p>\n

\u201cThat fog has gotten denser and lighter depending on the month, depending on the tariff policy that comes out in a given week,\u201d Schulman said. <\/p>\n

He added that President Donald Trump\u2019s budget law provided some clarity \u2014 \u201cgood or bad\u201d \u2014 but absent that, many consumers are in \u201ca bit of a holding pattern.\u201d<\/p>\n

The company now expects full-year same-store sales growth of 4% to 6%, down from prior guidance of 6% to 8%. <\/p>\n

While still ahead of the broader industry, the revision fell short of analysts\u2019 expectations.<\/p>\n

Growth outlook still exceeds industry average, but slowdown is notable: analysts<\/h2>\n

Schulman noted that sales trends moderated in the second quarter but regained momentum in the third. <\/p>\n

However, the company is facing tougher comparisons to last year, when the launch of grilled steak drew more dinner orders and male customers.<\/p>\n

For the second quarter, revenue rose 20.3% year-over-year to $278.2 million, missing Wall Street\u2019s estimates. <\/p>\n

Same-store sales grew 2.1%, also below expectations. GAAP earnings per share came in at 16 cents, topping forecasts of 13 cents.<\/p>\n

Tracey Ryniec, a strategist at Zacks, said in emailed comments in a MarketWatch report, that while Cava\u2019s growth outlook still exceeds the industry average, the slowdown was notable. <\/p>\n

“Cava isn’t so special after all,” she said.<\/p>\n

“After blowing out same-store sales in Q1 by 10.8%, it fell in line with the industry at 2.1% in Q2. It’s not negative, so that’s helpful,” she said.<\/p>\n

Industry under pressure to offer value<\/h2>\n

Cava\u2019s update comes as the restaurant sector intensifies efforts to attract budget-conscious diners. <\/p>\n

McDonald\u2019s has noted continued spending from higher-income customers, while lower-income patrons remain pressured. <\/p>\n

Wendy\u2019s recently said multiple promotions had confused customers and hurt sales. Starbucks is revamping store layouts to improve customer experience.<\/p>\n

In May, Cava announced plans to redesign its restaurants with more natural light, comfortable seating, and greenery to create warmer, more inviting spaces. <\/p>\n

\u201cWe will continue to challenge the idea that the dining room is a relic of the past,\u201d Schulman said at the time.<\/p>\n

Investing in automation to ease kitchen strain<\/h2>\n

Separately on Tuesday, Hyphen \u2014 a developer of automated make-lines for restaurant kitchens \u2014 said it raised $25 million in a funding round led by Cava and Chipotle Mexican Grill. <\/p>\n

The investment reflects growing interest in automation as restaurants grapple with delivery demand and labour shortages.<\/p>\n

Schulman said automation could enhance customer service rather than replace staff. \u201cWe think automation can be relevant to enhance the human experience, not replace it,\u201d he said.<\/p>\n

The post Cava shares plunge 22% after trimming sales outlook amid economic uncertainty<\/a> appeared first on Invezz<\/a><\/p>\n

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Shares of Cava Group Inc. tumbled by more than 22% in pre-market trading on Wednesday, extending steep after-hours losses from Tuesday, after the Mediterranean fast-casual chain lowered its full-year same-store sales forecast. The move comes as the company faces challenging comparisons with last year\u2019s performance and navigates what its chief executive described as a \u201cfog\u201d <\/p>\n","protected":false},"author":1,"featured_media":42501,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-42500","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=42500"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42500\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/42501"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=42500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=42500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=42500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}