Cava falls after cutting FY same-store sales forecast

CAVA

05/11/2025 16:55

Updates

** Shares of restaurant chain Cava Group CAVA.N fall ~2% to $51.07

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

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

** Expect ~20 basis point impact from tariffs in Q4 related to imported beef, Cava CFO Tricia Tolivar says

** At least 12 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

** Jefferies analysts say CAVA faces near-term headwinds as it opens new stores, faces tough year-ago comparisons, and broader weakness in consumer spending,

        ** Macroeconomic pressures on consumer spending, inflation, owner-operator model may cause earnings volatility, Piper Sandler analysts say

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

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

 (Reporting by Avinash P and Chandni Shah in Bengaluru)

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