Cava Crashes After Outlook Slashed, Cautious On Diners

Shares of Cava Group crashed in premarket trading after the Mediterranean fast-casual restaurant chain slashed its full-year same-store sales growth forecast to a maximum of 6%, versus the previous estimate of 8%.

The downgrade follows the slowest quarterly sales growth since early 2021, with 2Q same-store sales rising just 2.1% as flat foot traffic offsets gains from price hikes and add-ons.

„That fog has gotten denser and lighter depending on the month, depending on the tariff policy that comes out in a given week,” CEO Brett Schulman said in an interview, quoted by MarketWatch.

Schulman noted that President Trump’s One Big Beautiful Bill Act offered some near-term clarity for consumers, be it good or bad. „But in the absence of that,” he added, „they’re in a bit of a holding pattern.”

The slowdown comes amid multiple headwinds for the fast-casual restaurant chain, including the hype around opening stores nationwide, along with inflation-weary consumers.

Shares of Cava have soared nearly 600% since its June 2023 IPO, peaking at $150 in December 2024, and have since halved by Tuesday’s close. In premarket trading, shares tumbled 24% in New York, and if losses hold through the cash session, it would mark the largest daily decline on record for the stock.

The deteriorating full-year outlook illustrates how difficult it is for some restaurant chains to operate in today’s challenging macroeconomic conditions of elevated inflation and tariffs, much of which has pressured low/mid-tier consumers.

„CAVA disappointments in restaurants continuing (ex MCD). CAVA expectations were low post the summer conference circuit and their comments about a tough macro, but not this low,” Goldman analyst Ariana Contessa told clients.

Houston, we have a problem pic.twitter.com/9v7R9Uxkjd

— tae kim (@firstadopter) August 13, 2025

Zacks analyst Tracey Ryniec told Bloomberg, „This report is a disappointment given the expectations and the company’s expensive valuation.”