5 Insightful Analyst Questions From CAVA's Q3 Earnings Call

CAVA’s third quarter results were met with a negative market reaction, reflecting concerns about moderating same-store sales growth and a more challenging consumer environment. Management pointed to flat traffic and softer demand among younger guests as key factors behind the quarter’s performance. CEO Brett Schulman acknowledged, “today’s environment is creating real pressures for consumers, especially younger guests who are making more deliberate choices about where they spend.” While new menu innovations and continued expansion supported overall sales growth, the company faced higher labor and operating costs, which offset some of the benefits from increased scale and restaurant openings.

Is now the time to buy CAVA? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From CAVA’s Q3 Earnings Call

• Andrew Barish (Jefferies) asked about the persistence of softer same-store sales and the role of macroeconomic factors, to which CFO Tricia Tolivar explained that the softness was consistent across geographies and largely driven by external consumer pressures.
• Brian Mullan (Piper Sandler) inquired about the salmon menu test and operational implications. CEO Brett Schulman responded that results have been positive with strong appeal across dayparts, and the TurboChef ovens enable easy execution.
• David Tarantino (Baird) questioned the recent operations leadership change and impact on guest experience. Schulman said it was proactive, aiming to deepen focus on exceptional hospitality rather than responding to specific issues.
• Sharon Zackfia (William Blair) asked about younger guest trends and loyalty program effectiveness. Schulman noted a decline in visit frequency among younger cohorts but highlighted increased loyalty program engagement as a positive counterbalance.
• Jon Tower (Citigroup) raised concerns about pricing actions for 2026 and store opening strategies. Tolivar confirmed price increases would remain modest and explained that pacing of new openings is being balanced to manage the “honeymoon” effect for new stores.

Catalysts in Upcoming Quarters

The StockStory team will be monitoring (1) the rollout and guest response to new menu items like salmon and expanded pita chip offerings, (2) the effectiveness of technology upgrades such as kitchen display systems on operational efficiency and guest satisfaction, and (3) the impact of loyalty program enhancements on visit frequency and traffic. Execution on cost control and further investments in staff development will also be key drivers to watch.

CAVA currently trades at $49.75, down from $51.67 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.