CAVA Group Stock Tumbles as Chain's Same-Restaurant Sales Come Up Short

Kevin Carter / Getty Images The Mediterranean-themed fast-casual chain missed revenue forecasts and slashed its same-restaurant sales growth outlook

Key Takeaways

CAVA Group's same-restaurant sales came in well short of estimates as diners pulled back on spending. The Mediterranean-themed fast-casual chain also missed revenue forecasts and slashed its same-restaurant sales growth outlook. CAVA Group blamed the shortfall on a fluid macroeconomic environment causing a "fog" for consumers.

Shares of CAVA Group (CAVA) sank nearly 25% in premarket trading Wednesday, a day after the fast-casual restaurant chain posted weaker-than-expected results and cut its outlook on slowing sales.

The operator of its namesake Mediterranean-themed eateries reported second-quarter same-restaurant sales increased 2.1% year-over-year, while analysts surveyed by Visible Alpha were looking for a gain of 6.25%. Revenue rose 20% to $280.6 million, also short of forecasts. Adjusted earnings per share of $0.16 was above estimates.

CFO Tricia Tolivar told analysts during the earnings call that the industry was facing "a fluid macroeconomic environment and it's one that sort of creates a fog for consumers where things are changing constantly and it's hard to see the clear. And during those times, they tend to step off of the gas," according to an AlphaSense transcript. Tolivar added that while CAVA entered the quarter with momentum, "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."

The company now sees full-year same-restaurant sales growth to be 4.0% to 6.0%, versus its earlier outlook of 6.0% to 8.0%.

Even before today's trading, CAVA Group shares had lost about a quarter of their value in 2025. TradingView

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