Cava Group Stock Crumbles After Q2 Revenue Miss

Core Insights - CAVA Group Inc reported second-quarter earnings of $0.16 per share, surpassing estimates, but revenue of $280.62 million fell short of expectations [1] - The company's net income declined compared to previous quarters, and same-store sales were below Wall Street's estimates, contributing to a significant drop in stock price [1] Stock Performance - The stock price decreased by 15.3%, trading at $71.61, marking its worst session ever, with a low of $65.70, the lowest since April 2024, and a year-to-date decline of 38.7% [2] - Options activity is notably high, with 69,000 calls and 96,000 puts exchanged, indicating bearish sentiment, particularly in the August 65 put and October 55 put contracts [2] Market Sentiment - The bearish sentiment has intensified over the past two weeks, with the stock's 10-day put/call volume ratio exceeding 82% of annual readings, and short interest at 11.6% of the stock's available float [3] - CAVA Group stock has historically exceeded volatility expectations, reflected in a Schaeffer's Volatility Scorecard (SVS) rating of 79 out of 100 [3]