The shares of fast-casual restaurant chains CAVA Group Inc (NYSE:CAVA) and Darden Restaurants Inc (NYSE:DRI) are both moving lower today, after sector peer Chipotle Mexican Grill (CMG) reported dismal top-line quarterly results and slashed its full-year revenue forecast. The company warned of consumers cutting back on dining amid economy concerns and high inflation, sending ripples through the industry.
CAVA is down 10% to trade at $54.42 at last glance, pacing for its seventh-straight loss and worst day since August. Shares have dropped more than 60% in the last nine months, and earlier slipped through a previous floor at $60 to hit a 52-week low of $53.55, amid added pressure from the 60-day moving average.
Options traders are targeting CAVA Group stock today, with 19,000 calls and 16,000 puts traded so far -- double the volume typically seen at this point. The most active contract is the November 40 put, where positions are currently being sold to open.
DRI isn't much better off, last seen down 1.7% to trade at $179.37. The equity yesterday hit its lowest level since December, and has been struggling with overhead resistance at $190 for most of October. Shares are now a far cry from their June 20, record high of $228.27, but still sport a 12.2% year-over-year lead.
Options are currently looking affordable for DRI. This is per the security's Schaeffer's Volatility Index (SVI) of 25%, which ranks in the 16th percentile of its annual range.
