Why Is Cava (CAVA) Down 18.7% Since Last Earnings Report?

CAVA Group delivered Q2 earnings of $0.19 per share, beating estimates by 5.6%, with revenues up 31.3% year-over-year. The company opened 17 net new restaurants and achieved 5.3% guest traffic growth. However, shares have declined 18.7% since the earnings report due to margin contraction from rising food and labor costs, and analyst estimates have shifted downward by 12.84%. CAVA maintains its FY26 guidance but faces headwinds from cost pressures and industry challenges.