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Cava Cuts Outlook Again After Q3 Miss as Younger Diners Pull Back

Management points to fewer visits from 25- to 34-year-olds as the key drag on sales.

Overview

  • Cava lowered its 2025 same-restaurant sales growth forecast to 3%–4% and trimmed restaurant-level margin guidance to 24.4%–24.8%.
  • The company posted Q3 revenue of about $292 million and adjusted EPS of $0.12 with same-restaurant sales up 1.9%, missing consensus on both sales and earnings.
  • Executives cited a modest cost headwind from tariffs, estimating roughly a 20-basis-point impact tied largely to imported beef.
  • Shares fell in extended trading and several firms cut price targets, including T.D. Cowen, KeyBanc, Stifel, Piper Sandler, Bernstein and Barclays.
  • Cava opened 17 net restaurants in the quarter to 415 locations and said it is gaining market share, with relatively stronger trends among lower-income guests due to restrained pricing.