Cava Stock Plunges After Lowered Sales Forecast | JQJO

Cava's stock plummeted over 20% after the company lowered its full-year same-store sales growth forecast to 4-6%, from the previous 6-8%. While second-quarter net income was $18.4 million (16 cents per share), same-store sales growth was only 2.1%, significantly below Wall Street's 6.1% projection. Despite exceeding earnings per share expectations (16 cents vs. 13 cents expected), revenue fell short of projections ($280.6 million vs. $285.6 million expected). The company attributed the slowdown to decreased growth after the one-year anniversary of its grilled steak launch. Cava also announced a $25 million investment in Hyphen, an automated portioning technology.