Overview
- Executives across the three brands report fewer visits from 25–35 year-olds, pointing to unemployment, student-loan repayments, weaker wage gains and a shift to groceries.
- Investors sold off the stocks after earnings, with the past month showing declines of roughly 26% for Chipotle, 27% for Cava and 21% for Sweetgreen.
- Quarterly results were mixed: Chipotle missed estimates with a 0.8% traffic decline, Sweetgreen’s sales fell 0.6% with a larger loss, and Cava grew revenue about 20% but narrowly missed consensus.
- Sweetgreen said spending by 25–35 year-olds, roughly 30% of its customer base, dropped about 15% in the quarter.
- Value-focused rivals gained traction, with McDonald’s, Chili’s and Burger King pushing low-cost deals, while Chipotle works to reframe its value proposition and all three emphasize menu innovation, rewards and execution over broad discounts.