Cava eyes worst day on record after annual sales forecast cut

CAVA

13/08/2025 14:53

Updates

** Shares of restaurant chain Cava Group CAVA.N tumble as much as 22.3% to $65.70 in early trade, after co lowers annual same-store sales forecast for the first time since IPO two years ago

** Stock set for its worst day on record, if losses hold

** Brokerage Jefferies says forecast cut "reset expectations to prove realistic if not conservative"

** Co also misses Q2 same-store sales and revenue estimates - data compiled by LSEG

** Analysts at Stifel say Q2 softness was largely a function of lapping last year's "blockbuster" steak launch, and trends so far in current quarter have improved; sees sharp pullback in shares as a buying opportunity

** At least six brokerages cut PT on stock; average rating of 19 brokerages is "buy"; with a median PT of $96

** Up to last close, stock down ~25% YTD

(Reporting by Nikhil Sharma and Neil J Kanatt)

((nikhil.sharma@thomsonreuters.com))