Fast-casual restaurants falter in uncertain environment — but not Cava

Cava (CAVA) is doing thing different fast-casual chains are struggling to do: bringing successful customers.

As macro uncertainty persists owed to the interaction of President Trump's tariffs, contributing to the second-lowest user sentiment speechmaking connected record, Cava's results showed strength.

The Mediterranean-inspired concatenation reported connected Thursday that same-store income grew 10.8% successful the archetypal 4th and ft postulation accrued 7.5%. Cava's better-than-expected income stood retired against warnings of a user slowdown from peers similar Chipotle (CMG) and Sweetgreen (SG).

The marque aims to "be a larboard successful that uncertainty and inflationary tempest for our guests," Cava CEO Brett Schulman told Yahoo Finance (video above). He added that US consumers are "becoming much selective, but they're inactive selecting to take to devour astatine Cava."

Still, Cava banal has experienced akin unit arsenic shares of peers successful caller months and is 44% disconnected its November 52-week precocious of $172.43. Year to date, shares of Cava are down 14%, portion Shake Shack (SHAK), Chipotle, and Sweetgreen person fallen 8%, 13%, and 52%, respectively.

Fast-casual person Chipotle didn't person the aforesaid luck this past quarter, adjacent though the mean outgo of its chickenhearted burrito oregon vessel is astir $10 nationally, which is little than Cava's mean bid terms of astir $14.50.

Chipotle's same-store income dropped 0.4% twelvemonth implicit year, the archetypal diminution since COVID-19 caused the concatenation to unopen stores successful the 2nd 4th of 2020. Transactions fell 2.3%, the archetypal diminution since 2022.

"We talked to consumers broadly astir what is causing them to beryllium connected the sideline successful this economy," Chipotle CEO Scott Boatwright told Yahoo Finance successful an interview. "It's truly trying to prevention wealth [and] uncertainty astir what's going connected with the planetary economy."

Read more: What Trump's tariffs mean for the system and your wallet

Other fast-casual chains faced akin challenges. Sweetgreen's same-store income maturation fell 3.1%, which CEO Jon Neman said was "reflective of a broader user slowdown."

Shake Shack saw same-store income maturation of 0.2%, but ft postulation fell 4.6% successful the quarter. CFO Katherine Fogertey attributed the little postulation to "unfavorable upwind and broader manufacture pressures."

"It's ever a marketplace stock conflict successful restaurants," William Blair expert Sharon Zackfia told Yahoo Finance. Zackfia added that "Cava has been winning," arsenic casual eating options are offering "pretty crisp terms points," allowing them to instrumentality stock from accelerated nutrient chains and each other.