Cava falls after cutting FY same store sales forecast

CAVA

05/11/2025 10:00

** Shares of restaurant chain Cava Group CAVA.N fall 8.9% to $47.1 premarket

** CAVA cuts annual same-store sales growth forecast for second time this year; now expects it to rise between 3% and 4%, up from prior range of 4% to 6%

** Q3 revenue of $289.8 mln misses analysts' estimates; reports adj. EPS of 12 cents

** "In the current quarter, there's about a 20-basis-point impact related to tariffs, largely for our imported beef that we've served to our guests every day," Cava CFO Tricia Tolivar says

** At least five brokerages cut PT on stock post results

** "In the near term, CAVA is disadvantaged by an outsized Gen Z customer base where restaurant spending is struggling," TD Cowen analysts say in note

** 14 of 23 brokerages rate stock "buy" or higher, nine "hold"; their median PT is $72- LSEG data

** Up to last close, stock has more than halved in value in 2025

 (Reporting by Avinash P in Bengaluru)

 ((Avinash.P@thomsonreuters.com;))