Cava Stock Is Crashing. Is It Time to Buy?

"The next Chipotle" isn't getting much love from investors these days. Shares of Cava Group (NYSE: CAVA) crashed this week following a second-quarter report that missed the mark. Revenue came up short of analyst expectations, and same-store sales grew by just 2.1%. The fast-casual restaurant chain also slashed its full-year outlook for same-store sales to a range of 4% to 6%, a full two percentage points lower than its previous guidance.Cava CFO Tricia Tolivar pointed to a few factors that impacted the company's Q2 results. First, Cava added steak to its menu last year, giving it a boost that the company is now lapping. The steak launch made the comparison tougher and contributed to the slowdown in same-store sales.Second, the restaurants that opened in 2024 suffered what Tolivar called a "honeymoon effect." Those restaurants outperformed sales expectations initially, but that quick initial growth couldn't be sustained. The company hasn't experienced this type of post-opening slowdown in previous years, so it was unexpected.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool