CAVA earnings for the third quarter of 2025

reward On Tuesday, it lowered its full-year forecast for the second straight quarter as younger consumers visit its restaurants less.

“When you look at the different age demographics of fast food, the 25- to 34-year-old consumer seems to be affected a little bit more than others, and fast food tends to focus more on those consumers within their guest portfolio,” Chief Financial Officer Tricia Tolivar said in an interview, adding that the company saw a decline in demand as it entered the final quarter of the year.

She attributed the decline from younger consumers to a higher unemployment rate among residents, as well as a greater likelihood of facing repayment on student loans that resumed in the spring. Moreover, the tariffs imposed by President Donald Trump “created a general uncertainty for the consumer,” according to Tolivar.

The occasional fast competitor Chipotle Mexican Grill It reported similar behavior from the same age group when it released third-quarter earnings on Wednesday.

For 2025, Cava now expects its same-store sales to increase 3% to 4%, down from its previous forecast of 4% to 6%. The company also expects profit margins at the restaurant level to decline, lowering its forecast to a range of 24.4% to 24.8%, down from the previous forecast of 24.8% to 25.2%.

Cava shares fell 5% in extended trading. As of Tuesday’s close, the stock is down 54% this year.

Here’s what the company reported for the quarter ending October 5 compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• Earnings per share: 12 cents adjusted, in line with expectations
• Revenue: $292.2 million versus $292.6 million expected

Cava’s same-store sales rose 1.9%, below Wall Street expectations of 2.8%, according to StreetAccount estimates. The chain’s traffic was flat compared to the same period last year, but increases in menu prices and a higher mix of premium protein options boosted sales.

Although same-store sales growth is slowing, Cava is gaining market share, according to Tulivar. This fact suggests that consumers aged 25 to 34 may be cooking at home or packing their own lunches, rather than turning to fast food.

“The consumer seems to be becoming more thoughtful about their dining occasions and how often they do so,” Tolivar said.

Unlike Chipotle and the broader restaurant industry, Cava is seeing higher same-store sales growth from lower-income consumers; Tolivar credited the chain’s choice to keep its menu prices below inflation, providing a less expensive option for budget-conscious consumers.

Net sales of Cava By 20% to $292.2 million, supported by the opening of new restaurants. Since the third quarter of last year, Cava has opened a net 74 locations, bringing its total footprint to 415, as of October 5.

The Mediterranean chain reported third-quarter net income of $14.7 million, or 12 cents per share, down from $18 million, or 15 cents per share, a year earlier.

Excluding executive transition costs and other items, Cava earned 12 cents per share.