Cava on Tuesday cut its full-year forecast for the second straight quarter, citing decreased visits from younger consumers to its restaurants.
“When you look at different age demographics of fast casual, the 25- to 34-year-old consumer seems to be impacted a bit more than others, and fast casual tends to have a higher concentration of those consumers within their guest portfolio,” CFO Tricia Tolivar said in an interview. She added that the company saw demand fall as it entered the final quarter of the year.
Tolivar attributed the pullback from younger consumers to several factors, including the demographic’s higher unemployment rate and the resumption of student loan repayments in the spring. Additionally, tariffs imposed by President Donald Trump have “created an overall fog for the consumer,” according to Tolivar.
Fast-casual rival Chipotle Mexican Grill reported similar behavior from the same age group when it released its third-quarter earnings on Wednesday.
For 2025, Cava now projects its same-store sales will increase by 3% to 4%, down from its prior outlook of 4% to 6% growth. The company also expects lower restaurant-level profit margins, decreasing its projections to a range of 24.4% to 24.8%, down from the previous forecast of 24.8% to 25.2%.
Following the announcement, Cava shares fell 5% in extended trading. As of Tuesday’s close, the stock has tumbled 54% this year.
### Quarterly Performance Highlights
For the quarter ended October 5, Cava reported the following results compared with Wall Street expectations, based on a survey of analysts by LSEG:
– **Earnings per share:** 12 cents adjusted, in line with expectations
– **Revenue:** $292.2 million vs. $292.6 million expected
Cava’s same-store sales rose 1.9%, falling short of Wall Street’s expectations of 2.8%, according to StreetAccount estimates. The chain’s traffic was flat compared with the year-ago period, but menu price increases and a higher mix of premium protein options helped boost sales.
Despite slower same-store sales growth, Cava is gaining market share, according to Tolivar. This suggests that consumers aged 25 to 34 may be choosing to cook at home or pack lunches rather than trading down to fast food.
“It appears that the consumer is being more thoughtful around their dining occasions, and how frequently they are doing that,” Tolivar said.
Unlike Chipotle and the broader restaurant industry, Cava is seeing higher same-store sales growth from low-income consumers. Tolivar credited this to the chain’s decision to keep menu prices below inflation, presenting a more affordable option for budget-conscious diners.
### Growth and Expansion
Cava’s net sales climbed 20% to $292.2 million, fueled by new restaurant openings. Since the third quarter of last year, the company has opened a net 74 locations, bringing its total footprint to 415 as of October 5.
The Mediterranean chain reported fiscal third-quarter net income of $14.7 million, or 12 cents per share, down from $18 million, or 15 cents per share, a year earlier. Excluding executive transition costs and other items, Cava earned 12 cents per share.
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Cava’s cautious outlook highlights the challenges facing fast-casual dining as younger consumers adjust their spending habits amid economic pressures. The company’s focus on affordability and market share growth will be key as it navigates these headwinds in the coming year.
https://www.cnbc.com/2025/11/04/cava-cava-q3-2025-earnings.html
