Cava cuts full-year forecast as younger consumers pullback

Core Insights - Cava has cut its full-year forecast for same-store sales growth due to a slowdown in younger diners, indicating broader challenges in the restaurant industry [1][2] Company Performance - Cava reported earnings per share (EPS) and revenues in line with expectations but missed same-store sales estimates, which were up 1.9%, lower than market expectations [2] - This marks the second consecutive guidance cut for Cava, reflecting a trend similar to that seen at Chipotle, where younger consumers aged 24 to 35 are visiting less frequently [3] Industry Trends - McDonald's reported a 2.4% increase in U.S. same-store sales, outperforming expectations, but noted that lower-income consumers are struggling, prompting a shift towards value offerings [4] - The CFO of McDonald's expressed caution regarding consumer behavior, highlighting ongoing challenges not only in the U.S. but also in key international markets [5] - There is a noticeable bifurcation in consumer spending, with lower-income customer traffic declining nearly double digits across the quick-service restaurant (QSR) sector, while upper-income consumer traffic increased nearly double digits [5] - Overall, consumers are becoming more selective about their dining choices amid economic uncertainty, impacting spending patterns in the restaurant industry [6]