Shares of Cava (NYSE:CAVA) dropped more than 20% during intraday trading after the company lowered its annual same-store restaurant sales guidance.
The Mediterranean-style restaurant chain posted earnings of $0.16 per share for the quarter ended June, topping analysts’ expectations of $0.13 per share. Revenue rose 20% year-over-year to $280.6 million, though it came in below the consensus estimate of $285.6 million.
Cava announced plans to invest up to $10 million in Hyphen, a food service platform utilizing robotics and artificial intelligence to automate digital order production. Rival Chipotle (NYSE:CMG) also invested $15 million in the platform.
The company revised its same-store sales growth outlook to 4%–6%, down from a previous range of 6%–8%, with CEO Brett Schulman citing a “fluid macroeconomic environment.” The report noted that former President Donald Trump’s aggressive tariff policies have contributed to economic uncertainty, potentially discouraging discretionary spending on dining out.
During the post-earnings call, executives said they anticipate “some very modest impacts” from import levies, as certain products are sourced from countries facing higher U.S. tariffs.
