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Cava stock tumbled 16% in afternoon trading on Wednesday, making it the latest fast-casual chain to feel Wall Street's wrath after reporting disappointing quarterly sales.
A year ago, eateries like Chipotle Mexican Grill and Cava were reporting double-digit same-store sales growth, even as the broader restaurant industry posted falling traffic and slumping sales. But times have changed. This spring, fast-casual chains saw foot traffic decline as sales slowed down or even shrank.
To explain the downturn, executives have said that diners are "cautious," in the words of Sweetgreen CEO Jonathan Neman, or dealing with an economic "fog," according to Cava CFO Tricia Tolivar.
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