Cava Shares Plunge as Same-Store Sales Growth Slows

Shares of Mediterranean-themed restaurant operator Cava (CAVA) tumbled after reporting weaker-than-expected same-store sales growth for its fiscal second quarter. Comparable-restaurant sales ROSE just 2.1%, a sharp deceleration from prior quarters and below analyst estimates of 6.1%.

The slowdown follows four consecutive quarters of double-digit COMP growth. While guest traffic remained flat, price and product mix contributed marginally to the uptick. Management attributes the weakness to tough comparisons against last year's grilled steak launch and plans new menu innovations like chicken shawarma to rekindle demand.

With the stock down nearly 40% year-to-date, investors face a classic growth stock dilemma: whether to treat this as a buying opportunity or a warning sign of deeper challenges ahead.