Cava, Chipotle and Other Fast-Casual Chains See Sales Slow as Consumers Cut Back

NEW YORK – After years of outpacing the broader restaurant industry, major fast-casual chains including Cava, Chipotle Mexican Grill, Shake Shack, and Sweetgreen are feeling the impact of a consumer spending slowdown.

Cava’s shares fell 16% on Wednesday after the Mediterranean chain reported same-store sales growth of 2.1% for the second quarter, well below analysts’ expectations of 6.1% and sharply lower than last year’s 14.4% surge. Chipotle posted a 4% decline in same-store sales, attributing the drop to reduced spending by lower-income customers.

Executives across the sector cited economic uncertainty, weaker consumer sentiment, and concerns about prices and job prospects as key factors weighing on demand. According to the University of Michigan, consumer sentiment dropped to 52.2 in April, one of its lowest-ever readings, before improving slightly to 60.7 in June.

Investor sentiment has also cooled. So far in 2025, Shake Shack shares are down 16%, Chipotle 28%, Cava 37%, and Sweetgreen 70%. Only Wingstop has recorded gains, rising 20% year-to-date despite reporting a 1.9% drop in same-store sales for the quarter.

Chains are responding with strategies to improve value perception. Sweetgreen is increasing protein portions by 25%, improving recipes, and offering promotional pricing to loyalty members. Cava executives noted that early third-quarter sales are improving, while Chipotle and Sweetgreen also reported signs of recovery in July.

Industry analysts expect fast-casual performance to remain under pressure in the near term, but operators are hoping for stronger results in the second half of the year as consumer sentiment stabilises.