Why CAVA Group, Inc. (CAVA) Went Down Today

We recently published a list of These 10 Stocks Were Sold Down Today, And Here’s Why. In this article, we are going to take a look at where CAVA Group, Inc. (NYSE:CAVA) stands against other stocks that were sold down today.

Ten mid-cap stocks were sold down on Monday, bucking a wider market optimism, amid the lack of catalysts to spark buying appetite, while investors continued to digest the firms’ own developments affecting their businesses.

The Dow Jones rose by only 0.32 percent, while the S&P 500 and the tech-heavy Nasdaq each inched up by 0.09 percent and 0.02 percent, respectively. Meanwhile, the 10 companies booked losses as high as 5 to 16 percent.

In this article, we list the names of the worst-performing stocks and detail the reasons behind their decline.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume.

CAVA Group, Inc. (NYSE:CAVA)

CAVA Group extended its losing streak for a fourth straight day on Monday, shedding 6.97 percent to finish at $90.06 apiece, with investors appearing to have shunned the company’s impressive earnings performance and raised outlook for the rest of the year.

In its latest earnings release, CAVA Group, Inc. (NYSE:CAVA) said net income in the first quarter of the year jumped by 84 percent to $25.7 million from the $13.99 million registered in the same period last year due to higher operating performance coupled with an income tax benefit of $10.7 million related to equity-based compensation, which partially offset higher depreciation and amortization.

Revenues increased by 28 percent to $331.8 million from $259 million.

Buoyed by the promising figures, CAVA Group, Inc. (NYSE:CAVA) raised its full-year outlook for adjusted EBITDA, now pegged at between $152 million and $159 million as compared with the $150 million to $157 million previously.

Overall, CAVA ranks 8th on our list of stocks that were sold down today. While we acknowledge the potential of CAVA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CAVA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.