Key Stats for CAVA Stock
- Price Change for CAVA stock: -22%
- Current Share Price: $65.60
- 52-Week High: $173
- CAVA Stock Price Target: $110
What Happened?
CAVA (CAVA) stock plunged more than 22% after the Mediterranean fast-casual chain lowered its full-year same-store sales guidance despite beating earnings expectations.
It reported second-quarter earnings per share of $0.16, beating the $0.13 expected, but revenue of $280.6 million fell short of the $285.2 million Wall Street was anticipating.
The disappointing news came from the same-store sales growth of just 2.1% versus analyst expectations of 6.1%.
CAVA attributed the slowdown to lapping the successful launch of grilled steak from a year ago, which had driven traffic growth in the prior year period.
CFO Tricia Tolivar noted that while the quarter started strong, growth decelerated after the anniversary of the steak launch.
For the full year, CAVA lowered its same-store sales guidance to 4%-6% growth, down from the previous range of 6%-8%, citing ongoing macroeconomic pressures affecting consumer spending.
See analysts’ growth forecasts and price targets for CAVA stock (It’s free!) >>>
What the Market Is Telling Us About CAVA Stock
The market’s harsh reaction to CAVA stock reflects concerns that its exceptional growth trajectory may be moderating as the company faces tougher comparisons and a more challenging consumer environment.
Same-store sales growth of 2.1% represents a dramatic deceleration from the 14.4% growth reported in the same quarter last year.
While CAVA continues to expand rapidly with 16 new restaurant openings in the quarter and strong unit economics on new locations, investors appear focused on the core business momentum.
The company’s new 2025 restaurant class is trending above $3 million in first-year average unit volumes, well above the $2.3 million target, demonstrating continued brand strength.
However, the guidance cut signals that even successful restaurant concepts aren’t immune to broader industry headwinds.
Fellow fast-casual chains like Chipotle and Sweetgreen have also reported disappointing same-store sales, suggesting sector-wide challenges that may persist through the remainder of the year.
Due to the ongoing pullback, CAVA stock currently trades over 60% below all-time highs in August 2025.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
