Cava Shares Plunge Over 20% After Lowering Sales Forecast

Shares of Mediterranean restaurant chain Cava tumbled more than 20% in extended trading on Tuesday after the company cut its full-year same-store sales growth forecast. The stock, which has already fallen 40% in 2025, now faces further pressure from weaker-than-expected second-quarter results.

Cava now projects same-store sales growth of 4% to 6% for the year, down from its earlier estimate of 6% to 8%. In the second quarter, same-store sales rose just 2.1%, missing Wall Street’s expectation of 6.1%. Quarterly traffic was described as “roughly flat,” compared to the 14.4% same-store sales growth a year earlier.

For the quarter, Cava posted net income of $18.4 million, or 16 cents per share, slightly lower than last year’s $19.7 million, or 17 cents per share. Revenue came in at $280.6 million, falling short of the $285.6 million analysts had expected. Net restaurant sales increased 20% to $278.2 million, largely driven by new restaurant openings.

The company attributed part of the slowdown to the anniversary of its grilled steak launch, which had boosted traffic in the previous year. CFO Tricia Tolivar noted that sales momentum slowed after the first quarter despite a strong start.

In addition to lowering its sales forecast, Cava announced an investment in Hyphen, a restaurant automation startup. The company joined Chipotle Mexican Grill in a $25 million Series B funding round for Hyphen, which specializes in automating plate and bowl portioning. Cava CEO Brett Schulman said the pilot program could improve order accuracy and speed during peak digital hours.