Fast-casual restaurants Chipotle, Sweetgreen, and Cava struggle amid inflation and shifting consumer sentiment.

Chipotle, Sweetgreen, and Cava stocks have declined significantly over the past year, with losses of 48%, 82%, and 60%, respectively. The fast-casual restaurant sector is struggling due to consumer confidence waning amid persistent inflation, shifting sentiment, and a softening labor market. Consumers are abandoning these chains due to high prices, with average bowls exceeding $20, pushing lower-income diners to cheaper alternatives. The sector is expected to remain weak in the near and mid-term.