Cava Struggles with Sluggish Demand and Revised Guidance

about 1 month ago

Nora Melinda

"And then Cava, ticker CAV, that stock was down as much as 4%. But it's about flat right now. What did we learn uh from that move today? Hearing its decline, but still the stock has really had a rough year. Shares are down about 54% so far year to date. And this is of course the company slashing its full year sales growth target. They're saying that foot traffic has stalled in the third quarter. And they're really seeing c consumers that are financially squeezed here. really foregoing a lot of the fast casual restaurants as we've been discussing here. I mean, we heard from Shake Shack. I mean, we heard from Chipotle. We've been hearing from a lot of those in the fast casual space and it seems to be the same read through here. Consumers are struggling right now."

The insight details Cava's (CAV) weak performance, noting a 54% drop in shares YTD along with lowered full-year sales growth targets and stalled foot traffic. It underscores that financially squeezed consumers are cutting back on discretionary fast casual dining, affecting the stock negatively.

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