Pedestrians carry bags of Cava along Wall Street near the New York Stock Exchange (NYSE) in New York, United States, Monday, August 18, 2025.
Michael Nagle | Bloomberg | Getty Images
How are you On Tuesday, it lowered its full-year forecast for the second straight quarter as younger consumers visited its restaurants less frequently.
“When you look at the different age groups of fast casual consumers, consumers 25 to 34 seem to be impacted a little more than others, and fast casual tends to have a higher concentration of those consumers within their guest portfolio,” Chief Financial Officer Tricia Tolivar said in an interview, adding that the company saw demand drop entering the final quarter of the year.
She attributed the decline among younger consumers to that demographic’s higher unemployment rate, as well as a higher likelihood of meeting student loan payments that resumed in the spring. Additionally, tariffs imposed by President Donald Trump “have created a general fog for the consumer,” according to Tolivar.
Fast and casual rival Chipotle Mexican Grill reported similar behavior from the same age cohort when it released its third-quarter results on Wednesday.
For 2025, Cava now expects its same-store sales to increase 3% to 4%, down from its previous forecast of 4% to 6%. The company also expects profit margins at the restaurant level to decline, reducing its forecast to a range of 24.4% to 24.8%, down from the previous forecast of 24.8% to 25.2%.
Cava shares fell 5% in extended trading. As of Tuesday’s close, the stock is down 54% this year.
Here’s what the company reported for the quarter ended October 5 versus what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: 12 cents adjusted, in line with expectations
- Revenue: $292.2 million versus $292.6 million expected
Cava’s same-store sales rose 1.9%, below Wall Street expectations of 2.8%, according to StreetAccount estimates. The chain’s traffic remained flat compared to the same period last year, but menu price increases and a wider range of premium protein options have boosted sales.
Despite slower same-store sales growth, Cava is gaining market share, according to Tolivar. This fact suggests that consumers aged 25 to 34 may be cooking at home or packing their lunches, rather than turning to fast food.
“It seems like the consumer is more mindful of their meals and how often they eat it,” Tolivar said.
Unlike Chipotle and the restaurant industry as a whole, Cava is experiencing higher same-store sales growth from lower-income consumers; Tolivar credited the chain’s choice to keep its menu prices below inflation, presenting a more affordable option for budget-conscious consumers.
Net sales of Cava climbed 20% to $292.2 million, fueled by new restaurant openings. Since the third quarter of last year, Cava has opened a net 74 locations, bringing its total footprint to 415 as of October 5.
The Mediterranean chain reported net income of $14.7 million, or 12 cents per share, in the third quarter, compared with $18 million, or 15 cents per share, a year earlier.
Excluding executive transition costs and other items, Cava earned 12 cents per share.