Why Are Cava Shares Falling Despite Strong Results, and What Does It Mean for Investors?

Despite being one of the fastest-growing restaurant concepts around, Cava Group's (NYSE: CAVA) stock has failed to gain any traction this year. This was evident once again after its stock slipped despite another strong showing from the fast-casual Mediterranean-themed restaurant operator when it reported its fiscal first-quarter results. The stock is now down around 14% in 2025, as of this writing.Let's dig into the company's fiscal Q1 results to see if investors should buy the dip in the stock.Cava's string of double-digit same-store sales growth continued in its fiscal Q1, which ended April 20. Its same-restaurant sales climbed 10.8%, with a 7.5% increase in guest traffic and a 3.3% rise in price and mix. That was just ahead of the 10.3% increase that analysts had projected, as compiled by StreetAccount. It also continued its strong streak of recent same-store sales results over the past four quarters. Continue reading

May 20, 2025 - 11:09
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Why Are Cava Shares Falling Despite Strong Results, and What Does It Mean for Investors?

Despite being one of the fastest-growing restaurant concepts around, Cava Group's (NYSE: CAVA) stock has failed to gain any traction this year. This was evident once again after its stock slipped despite another strong showing from the fast-casual Mediterranean-themed restaurant operator when it reported its fiscal first-quarter results. The stock is now down around 14% in 2025, as of this writing.

Let's dig into the company's fiscal Q1 results to see if investors should buy the dip in the stock.

Cava's string of double-digit same-store sales growth continued in its fiscal Q1, which ended April 20. Its same-restaurant sales climbed 10.8%, with a 7.5% increase in guest traffic and a 3.3% rise in price and mix. That was just ahead of the 10.3% increase that analysts had projected, as compiled by StreetAccount. It also continued its strong streak of recent same-store sales results over the past four quarters.

Continue reading