Core Insights - CAVA Group, Inc. reported third-quarter earnings that missed analyst expectations, leading to a decline in stock price [1][2] Financial Performance - Quarterly earnings were reported at 12 cents per share, below the consensus estimate of 13 cents [2] - Quarterly revenue was $292.23 million, slightly missing the Street estimate of $292.8 million [2] - Year-over-year revenue growth was 20%, with same restaurant sales growth of 1.9% [5] Operational Highlights - CAVA opened 17 net new restaurants during the quarter [5] - The restaurant-level profit margin was reported at 24.6% [5] - CEO Brett Schulman highlighted continued market share growth and reinforced the company's value proposition [3]

Group 1 - The article indicates a decline in demand for fast-casual restaurants, reflecting a broader trend in the industry [1]

Core Insights - CAVA (NYSE: CAVA) reported Q3 2025 earnings that largely met expectations but did not achieve profitability [1] Financial Performance - The earnings report was released after market close on Tuesday [1] - Results were in line with market expectations but highlighted a shortfall in profitability [1]

Core Insights - Cava Group, a Mediterranean fast-casual chain, reported third-quarter results that fell short of Wall Street's expectations due to challenges faced by younger and middle-income consumers amid rising costs and competitive pressures [1] Company Performance - The third-quarter results indicated that Cava Group's performance was negatively impacted by economic factors affecting consumer spending [1] - The company is experiencing increased competition in the fast-casual dining sector, which is further straining its market position [1] Consumer Trends - Younger and middle-income consumers are particularly struggling with higher costs, which is influencing their dining choices and spending habits [1] - The economic environment is leading to a shift in consumer behavior, affecting sales in the fast-casual segment [1]

The forward-looking statements included in this presentation are made only as of the date hereof. Any forward-looking statement made by us in this presentation speaks only as of the date of this presentation and are expressly qualified in their entirety by the cautionary statements included in this presentation. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Non-GAAP Financial Measures accordance with accoun ...

Exhibit 99.1 CAVA GROUP REPORTS THIRD QUARTER 2025 RESULTS YEAR OVER YEAR CAVA REVENUE GROWTH OF 20.0% INCLUDING CAVA SAME RESTAURANT SALES GROWTH OF 1.9% 17 NET NEW CAVA RESTAURANT OPENINGS DURING QUARTER THIRD QUARTER 2025 CAVA RESTAURANT-LEVEL PROFIT MARGIN OF 24.6% WASHINGTON, D.C. (November 4, 2025) - CAVA Group, Inc. (NYSE: CAVA) ("CAVA Group" or the "Company"), the category-defining Mediterranean fast-casual restaurant brand that brings heart, health, and humanity to food, today announced financial r ...

Core Insights - Cava has reduced its full-year forecast for the second consecutive quarter due to decreased visits from younger consumers [1][4] Company Performance - Cava's same-store sales are now projected to increase by 3% to 4%, down from a previous forecast of 4% to 6% [4] - The company expects lower restaurant-level profit margins, revising projections to a range of 24.4% to 24.8%, down from 24.8% to 25.2% [4] - Cava's net sales increased by 20% to $292.2 million, driven by new restaurant openings, with a total of 415 locations as of October 5 [7] - The fiscal third-quarter net income was reported at $14.7 million, or 12 cents per share, down from $18 million, or 15 cents per share, a year earlier [8] Market Trends - The 25- to 34-year-old demographic is visiting fast-casual restaurants less frequently, influenced by higher unemployment rates and resumed student loan repayments [2][3] - Cava is gaining market share despite slower same-store sales growth, indicating that younger consumers may be opting to cook at home or pack lunches [6] - Unlike competitors, Cava is experiencing higher same-store sales growth from low-income consumers, attributed to keeping menu prices below inflation [6][7] Earnings Report - Cava's same-store sales rose by 1.9%, falling short of Wall Street's expectations of 2.8% [5] - Revenue reported was $292.2 million, slightly below the expected $292.6 million [9] - Adjusted earnings per share were 12 cents, in line with expectations [9]

Core Insights - CAVA Group reported a revenue growth of 20.0% year-over-year, reaching $289.8 million for the third quarter of fiscal 2025, driven by new restaurant openings and same restaurant sales growth of 1.9% [4][6][8] - The company opened 17 net new restaurants during the quarter, increasing the total number of CAVA restaurants to 415, a 17.9% increase year-over-year [6][27] - CAVA's restaurant-level profit margin was 24.6%, a slight decrease from 25.6% in the same quarter of the previous year, attributed to higher operating costs and a mix of third-party delivery [5][6] Financial Performance - Revenue for the third quarter of fiscal 2025 was $289.8 million, up from $241.5 million in the prior year quarter, marking a 20.0% increase [4][6] - Same restaurant sales growth was 1.9%, primarily driven by menu price adjustments and product mix, with guest traffic remaining flat [4][6] - Restaurant-level profit was $71.2 million, reflecting a 15.1% increase compared to the prior year quarter [6][8] Operational Highlights - CAVA's average unit volumes (AUV) for the 2025 cohort are trending above $3 million, indicating strong productivity from new restaurant openings [2][6] - Digital revenue accounted for 37.6% of total revenue, showcasing the company's successful integration of digital sales channels [6] - General and administrative expenses were $31.5 million, or 10.8% of revenue, down from 12.2% in the same quarter of the previous year, reflecting improved operational efficiency [7][8] Future Outlook - CAVA Group updated its fiscal full-year 2025 guidance, maintaining expectations for net new restaurant openings between 68 to 70 and adjusting same restaurant sales growth to 3.0% to 4.0% [11] - The company anticipates a restaurant-level profit margin of 24.4% to 24.8% and adjusted EBITDA of $148.0 million to $152.0 million for the full year [11]

Core Viewpoint - Goldman Sachs warns that consumer weakness has spread from low-income groups to the middle class, particularly affecting consumers aged 25-35, with many executives reporting the worst consumer confidence in decades [1][3]. Group 1: Consumer Sentiment and Market Performance - Goldman Sachs' consumer goods expert Scott Feiler notes a significant shift in market discussions, with more companies reporting a slowdown in consumption that now includes middle-income groups [3]. - The non-essential consumer goods sector has underperformed the market by 500 basis points over the past two weeks, indicating a broader market concern [3][9]. - Kraft Heinz CEO Carlos Abrams-Rivera stated that the company is facing one of the worst consumer confidence levels in decades, leading to a downward revision of annual sales guidance by 3% to 3.5% [3][5]. Group 2: Impact on Specific Companies - Chipotle's stock plummeted by 17%, citing reduced spending frequency among lower and middle-income customers due to pressures like unemployment and stagnant wage growth [5]. - CAVA and home goods retailer SG also saw significant stock declines of 11% and 9.6%, respectively, reflecting the broader trend of reduced consumer spending [5]. - O'Reilly Automotive reported moderate pressure on DIY transactions, indicating a reaction from consumers to rising prices [6]. Group 3: Broader Economic Indicators - The consumer discretionary sector has faced severe sell-offs, with non-essential goods underperforming the market by 400 basis points this week alone [8][9]. - Despite the overall consumer spending slowdown, high-end market segments remain resilient, with Visa reporting strong performance across various spending categories [9]. - Starbucks noted positive growth in transaction volume, particularly in its university and campus business, indicating some segments of the market are still thriving [9].

Chris O'Cull from Stifel Nicolaus lowered the price target for NYSE:CAVA to $100, indicating potential growth despite current challenges.CAVA's upcoming third-quarter earnings report is highly anticipated, with a history of surpassing earnings expectations but facing a projected decline in EPS.The stock is trading near its 52-week low, raising questions among investors about whether it presents a buying opportunity ahead of the earnings report.CAVA Group, Inc. (NYSE:CAVA) is a fast-casual restaurant chain k ...