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Restaurant chain Cava cuts sales forecast again as younger diners pull back
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Restaurant chain Cava cuts sales forecast again as younger diners pull back
Nov 4, 2025 1:39 PM

Nov 4 (Reuters) - Mediterranean restaurant chain Cava

Group ( CAVA ) cut annual same-store sales growth forecast for

the second time this year on Tuesday, signaling softer

dining-out demand, especially from lower-income and younger

customers.

Shares of the Washington, D.C.-based company were down 4%

after the bell.

Cava ( CAVA ) now expects full-year same-restaurant sales to rise

between 3% and 4%, down from its prior forecast of 4% to 6%.

Fast-casual brands such as Chipotle Mexican Grill ( CMG )

and Cava ( CAVA ) have warned of margin pressures and slowing demand from

the crucial segment of younger, lower-to-middle-income consumers

who are cutting back on discretionary spending.

Last week, Chipotle shares fell after the burrito chain

cut its sales forecast for the third time this year, while

fast-food chains such as Burger King and Domino's Pizza

have gained from their focus on value menu items.

Customers aged 25 to 35 are also under strain and pulling

back on spending amid rising unemployment, resumed student loan

payments and higher rents, Cava CFO Tricia Tolivar told Reuters.

The company also lowered its annual restaurant-level profit

margin forecast to 24.4%-24.8% from 24.8%-25.2%.

"In the current quarter, there's about a 20 basis point

impact related to tariffs, largely for our imported beef that

we've served to our guests every day," Tolivar added.

Revenue for the reported third quarter was $289.8 million,

below estimates of $292.59 million, helped by demand for its

dinner and lunch menu.

The company posted quarterly earnings of 12 cents per share

for the period ended October 5, compared with analysts'

estimates of 13 cents, according to data compiled by LSEG.

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