CAVA Group (CAVA), a fast-casual Mediterranean chain, has had a rough ride on Wall Street this year despite beating earnings last quarter.
The stock is down more than 28% year-to-date, underperforming the broader S&P 500 Consumer Discretionary Sector, which has trimmed its losses to just 5%, according to Fidelity data.
Over the past 12 months, CAVA has barely held steady, while the broader sector is up more than 21%.
The company took another blow on May 15 after the company posted earnings.
CAVA pulled in $328.5 million in revenue, booked $25.7 million in net income, and notched a 10.8% increase in same-store sales, a key metric that tracks growth at existing locations.
That kind of performance stands out in today’s food industry where some chains are seeing foot traffic fade.
For example, Restaurant Brands, which owns Burger King, Popeyes, and Tim Hortons, is deep in what’s being called a "drive-thru recession", with same-store sales slipping across the board.
But despite the strong results, the company struck a cautious tone on the lingering uncertainty from Trump’s trade policies and how they might impact the business.
The next Chipotle?
CAVA has become a hit with customers who want healthy, quick meals that don’t break the bank.
The chain’s menu features options like falafel, spicy lamb meatballs, steak, lentils, roasted vegetables, hummus, and greens — all customizable and fresh-made.
Some analysts are already calling it the Mediterranean answer to Chipotle.
“CAVA is doing the same thing with the Mediterranean cuisine concept,” said Wedbush Securities analyst Nick Setyan, comparing it to how Chipotle scaled up Mexican food nationwide.
CEO Brett Schulman says one reason CAVA has built loyalty is by keeping price hikes in check.
From 2019 to 2024, CAVA raised menu prices just 15%, which is a far cry from the nearly 40% increase at McDonald’s over the same stretch.
That’s helped keep customers coming, and the company is betting that strong foot traffic will support expansion. CAVA now plans to open between 64 and 68 new locations this year, bumping its earlier target.
One of its newest spots, in Phoenix, Arizona, is already turning heads. On X, user Kab X posted: “Eating here today, and the line is just non-stop!”
$CAVA had a Grand Opening yesterday in Phoenix, AZ. Eating here today, and the line is just NON-STOP! 🔥 pic.twitter.com/gDVSJOcRHp
undefined Kab X (@KabraxFX) May 21, 2025
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