CAVA Group shares fell 7.8% following reports of slowing same-store sales growth. Restaurant traffic declined by 2% during the period. These metrics raised investor concerns regarding the sustainability of the company's rapid expansion and premium valuation.
Total revenue continues to grow, primarily driven by new restaurant openings. However, the market remains sensitive to growth deceleration because of CAVA's high valuation relative to fast-casual peers.
Freedom Capital Markets issued a Hold rating for the stock with a $95 price target. Analysts acknowledged the company's expansion potential but highlighted risks associated with cooling sales trends.