Core Viewpoint - The fast-casual sector, particularly Cava Group, has experienced significant volatility, with Cava's stock price dropping approximately 53% since its peak in February 2025, despite the belief that the underlying business remains strong and presents a buying opportunity [2][4]. Company Performance - Cava Group's stock surged over 300% from late 2023 to fall 2024, but faced a decline in 2025, shedding about 40% of its value over the past year [1][7]. - In Q3 2025, same-restaurant sales growth slowed to 1.9%, a stark contrast to the 18.1% growth in Q3 2024, indicating a shift in consumer spending behavior [5]. Market Context - The decline in Cava's performance is reflective of broader challenges in the dining sector, particularly due to reduced consumer spending among Gen Z diners, who have historically driven traffic in fast-casual dining [4][5]. New Store Performance - Cava's new restaurant openings in 2025 are performing exceptionally well, with annualized average unit volumes (AUVs) exceeding $3 million, placing them among the industry's top performers [6]. - Despite inflationary pressures, Cava maintained restaurant-level profit margins above 24% in Q3 2025, demonstrating strong profitability and effective pricing strategies [6][7].