Cava stock dropped 23% due to concerns about outlook, fears of tariffs, and market volatility

From Yahoo Finance: 2025-04-07 11:31:00

Cava Group (NYSE: CAVA) stock dropped 23% in the first quarter of 2025 due to concerns about its outlook and fears surrounding upcoming tariffs. The market’s shift towards safer stocks also contributed to the decline. Despite its recent performance, the fast-casual restaurant chain has shown strong growth, with revenue up 33% and net income increasing significantly.

With a focus on digital sales and expansion into new regions, Cava has the potential to attract more customers and investors. However, the market volatility has impacted its stock price, which currently trades at a forward one-year P/E ratio of 108. Investors may want to exercise caution when considering risky stocks like Cava during uncertain times.

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Read more at Yahoo Finance: Why Cava Stock Was Down 23% in Q1 as the S&P 500 Had Its Worst Quarter Since 2022