Cava Group Inc. shares fell roughly 20% in late trading after the Mediterranean fast-casual chain lowered its 2025 same-store sales outlook and reported softer-than-expected second-quarter revenue growth. For the 12 weeks ended 13 July, net income slipped to $18.4 million, or 16 cents a share, beating the 13-cent consensus. Revenue rose 20.3% from a year earlier to $278.2 million, missing projections of about $286 million. Comparable sales increased 2.1%, far below the more than 6% growth analysts had forecast and down from a 10.8% gain the previous quarter. Cava now projects full-year same-store sales growth of 4%–6%, reduced from 6%–8%. The Washington-based company kept its adjusted EBITDA target of $152 million–$159 million and lifted its plan for net new restaurant openings to 68–70 this year. It also said it participated in a $25 million funding round for Hyphen, a start-up that automates digital food preparation lines. The slowdown echoes broader pressure on fast-casual operators as consumers pare discretionary spending; Chipotle Mexican Grill posted a 4% drop in comparable sales this quarter and Sweetgreen cut its forecast for the second time this year.
Cava Group $CAVA is down more than 20% in after hours following its earnings 🔴🔴🔴🔴🔴🔴🔴🔴🔴🔴🔴🔴🔴 https://t.co/djHzQF9xgl
$CAVA CFO: "We entered Q2 25 with strong same-restaurant sales momentum, in line with the guidance we provided in the first quarter. However, as we moved through June, we saw a deceleration in same-restaurant sales, driven in part by the timing of our steak launch last year — a https://t.co/qnVmwP8sXx https://t.co/K3yyyli9oo
Cava misses on revenues, disappoints on comparable sales $CAVA: -22% After-Hours https://t.co/N5wS3HkLTV