Cava Shares Continue Downward Spiral Following Disappointing Earnings

Cava Group’s stock extended its dramatic decline in overnight trading, plunging an additional 7.5% as investors reacted to disappointing quarterly results and another downward revision to the company’s guidance. The restaurant chain has faced persistent selling pressure for several consecutive trading sessions.

The company’s third-quarter earnings report revealed multiple areas of concern. Cava posted earnings of $0.12 per share, missing analyst projections of $0.13. Revenue also disappointed at $289.8 million, coming in below market expectations.

Perhaps most troubling was the performance of comparable-store sales, which increased by just 1.9% compared to anticipated growth of 2.8%. This key metric indicates weakening demand at existing locations.

Profitability metrics also deteriorated during the quarter:
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