Cava Stock Plummets: Another Fast-Casual Apocalypse?

Okay, so Cava – that fast-casual Mediterranean joint that was supposed to be the next Chipotle – is now saying that millennials are ditching them. Turns out, those 25- to 34-year-olds are "impacted a bit more than others." Impacted? Give me a break. They're broke.

The Blame Game: Student Loans and Trump Tariffs?

CFO Tricia Tolivar is blaming higher unemployment, student loan repayments, and even Trump's tariffs. Really? Trump's tariffs are still a convenient scapegoat, huh? Like millennials were just flush with cash until those kicked in.

And the student loan thing... yeah, that sucks. But let's be real, avocado toast ain't cheap either. Maybe if they skipped the $12 bowl once a week, they could make a dent in those Sallie Mae bills.

Chipotle is seeing the same thing. Are we supposed to believe that it's only impacting the millennial age group? What about Gen Z?

Cava's stock has tumbled 54% this year. Maybe they should try, I don't know, offering something that isn't highway robbery?

The "Affordable" Mirage

Tolivar claims Cava is gaining market share because their prices are "below inflation." Below inflation? Have they seen inflation? Everything's expensive. My cable bill is practically a mortgage payment. What's next, are they going to blame the price of coffee?

They are saying low-income consumers are still showing up. So the bougie millennials are out, and the budget-conscious are in? That's not exactly a recipe for long-term success, is it?

The company opened 74 new locations since last year. So they're expanding, but their existing customers are spending less. That's like trying to fill a leaky bucket with a firehose. It's a bad idea. No, "bad" doesn't cover it—it's a recipe for disaster.

Restaurant-level profit margin fell to 24.6% from 25.6% a year ago. Net income declined 17.92% to $14.75M despite revenue growth, a troubling divergence. Management says it's because of higher food, beverage, and packaging costs alongside increased labor expenses. CAVA Down 4% After Reports Q3 Earnings Show Profitability Slide

It's the same old story. Costs go up, profits go down. And who pays the price? The customer.

The CEO's "Optimism" (aka Damage Control)

CEO Brett Schulman is saying the "underlying strength of our model is evident." Oh, really? Is that why the stock is in the toilet?

He's not promising a quick fix. At least he's honest about something. But investors want to hear specifics. When are margins going to stabilize? If they don't, this whole thing is going to collapse faster than a poorly-built pita bread.

They maintained their full-year guidance. Offcourse, they did. What else are they going to say? "Yeah, we're screwed"?

I'm not buying it.

So, What's the Real Problem?

It ain't Trump's tariffs or student loans. It's the fact that Cava is selling overpriced salads to people who are starting to realize they can make the same thing at home for a fraction of the cost. And honestly, who needs another fast-casual chain anyway? The market is saturated. It's only a matter of time before the whole bubble bursts.