Overview
- Chipotle, Cava and Sweetgreen reported fewer visits from 25–35-year-olds, with Sweetgreen saying spending from that cohort fell about 15% in the quarter.
- Leaders at the chains linked the pullback to rising youth unemployment, the return of student-loan collections and weaker real income growth, which are pushing more meals to groceries and home cooking.
- Industry data from Revenue Management Solutions show visit frequency fell across quick service, fast casual and full service in the third quarter compared with the prior three months.
- Value-focused brands including McDonald’s, Chili’s, Domino’s and Burger King drew traffic with aggressive meal deals, as Chili’s highlighted gains among households under $60,000.
- Investor pressure intensified after earnings, with Benzinga citing steep year-to-date stock declines for Chipotle, Cava and Sweetgreen, as reported Q3 comparable sales ranged from roughly +0.3% at Chipotle to +1.9% at Cava and −9.5% at Sweetgreen.