Key Takeaways
- CAVA Group’s same-restaurant gross sales got here in effectively in need of estimates as diners pulled again on spending.
- The Mediterranean-themed fast-casual chain additionally missed income forecasts and slashed its same-restaurant gross sales progress outlook.
- CAVA Group blamed the shortfall on a fluid macroeconomic surroundings inflicting a “fog” for shoppers.
Shares of CAVA Group (CAVA) sank almost 25% in premarket buying and selling Wednesday, a day after the fast-casual restaurant chain posted weaker-than-expected outcomes and lower its outlook on slowing gross sales.
The operator of its namesake Mediterranean-themed eateries reported second-quarter same-restaurant gross sales elevated 2.1% year-over-year, whereas analysts surveyed by Seen Alpha have been on the lookout for a achieve of 6.25%. Income rose 20% to $280.6 million, additionally in need of forecasts. Adjusted earnings per share of $0.16 was above estimates.
CFO Tricia Tolivar informed analysts throughout the earnings name that the trade was dealing with “a fluid macroeconomic surroundings and it is one which form of creates a fog for shoppers the place issues are altering continuously and it is onerous to see the clear. And through these instances, they have an inclination to step off of the gasoline,” in line with an AlphaSense transcript. Tolivar added that whereas CAVA entered the quarter with momentum, “as we moved by means of June, we noticed a deceleration in same-restaurant gross sales, pushed partially by the timing of our steak launch final 12 months.”
The corporate now sees full-year same-restaurant gross sales progress to be 4.0% to six.0%, versus its earlier outlook of 6.0% to eight.0%.
Even earlier than right this moment’s buying and selling, CAVA Group shares had misplaced a few quarter of their worth in 2025.
TradingView
