Cava revised its full-year same-store sales growth forecast to 4%-6%, down from the previous 6%-8%. This led to a 20% drop in shares. Second-quarter earnings per share were 16 cents, beating expectations of 13 cents. Net restaurant sales increased 20% to $278.2 million. Same-store sales rose by 2.1%.

The company reported a net income of $18.4 million in the second quarter, down from $19.7 million a year earlier. Cava saw 2.1% growth in same-store sales, lower than the industry projection of 6.1%. CFO Tricia Tolivar mentioned that sales slowed after the introduction of the grilled steak option. Other fast-casual chains like Chipotle and Sweetgreen also faced declining sales.

Cava maintained its adjusted earnings forecast of $152 million to $159 million for the full year. The company also expects restaurant-level profit margins to be between 24.8% and 25.2%. Cava participated in a $25 million Series B funding round for Hyphen, a company that automates plate and bowl portioning. Chipotle has also invested in Hyphen.

CEO Brett Schulman stated that piloting Hyphen’s automated digital makeline could improve order accuracy and speed during peak hours. The previous version of the story incorrectly described Chipotle’s investment in Hyphen.

Read more at CNBC: Cava (CAVA) Q2 2025 earnings