CAVA Group (CAVA) Slashes 16.6% as on Weak Same Store Sales Outlook

We recently published 10 Stocks Facing a Total Meltdown. CAVA Group, Inc. (NYSE:CAVA) is one of the worst-performing stocks on Wednesday.

CAVA Group fell by 16.63 percent on Wednesday to close at $70.45 apiece as investors soured on a slower-than-expected growth in same-store sales, pushing the company to lower its outlook.

In its earnings report, CAVA Group, Inc. (NYSE:CAVA) said it now expects same-store sales in the full-year period to grow by 4 to 6 percent, a marked reduction from the 6 to 8 percent growth as expected previously.

This followed a tempered same-store sales growth of only 2.1 percent in the second quarter of the year, falling short of the 6.25 percent as targeted by analysts.

According to CAVA Group, Inc. (NYSE:CAVA) CFO Tricia Tolivar, the industry was facing “a fluid macroeconomic environment and it’s one that sort of creates a fog for consumers where things are changing constantly and it’s hard to see the clear.”

“During those times, they tend to step off the gas,” she noted.

Tolivar said that while CAVA Group, Inc. (NYSE:CAVA) kicked off the second quarter with strong momentum, it saw a deceleration in same-store sales decline in June.

In the second quarter of the year, the company’s net income declined by 6.7 percent to $18.36 million from $19.7 million in the same period last year, albeit revenues were higher by 20 percent to $280.6 million versus the $233 million year-on-year.

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