The EPS of CAVA's Q4 2024 missed expectations, dropping by -0.01, which might be attributed to several key factors:
- Cost Pressures: Despite strong revenue growth, CAVA faced cost challenges that impacted profitability12. This suggests that the company's costs, possibly including ingredients, labor, or overheads, exceeded expectations, thereby affecting the net profit margin.
- Market Dynamics: The broader market context, including economic uncertainties and new tariff announcements, may have influenced investor sentiment and contributed to the decline in CAVA's share price, which could have implications for the company's financial performance3.
In summary, CAVA's Q4 2024 EPS surprise dip can be attributed to a combination of cost pressures and market dynamics.