CAVA Group Stock Drops 6.97% in Fourth Consecutive Day of Decline Trading Volume Ranks 157th

On May 19, 2025, CAVA Group (CAVA) experienced a significant decline, with its stock price dropping by 6.97%, marking the fourth consecutive day of decrease and a total decline of 9.67% over the past four days. The trading volume for the day was 5.00 billion, a 46.98% decrease from the previous day, placing it at the 157th position in terms of trading volume for the day.

CAVA's shift to a loyalty model, where customers earn and bank points, has shown promising results with increased engagement. The program, which was relaunched in October 2024 with a points-based system, has added about 50,000 members per week and is approaching 8 million total members. The percentage of total revenue from loyalty members has increased by 3.4% since the relaunch.

Cava is planning to introduce a tiered loyalty structure later this year to better tailor benefits to customer preferences. The company is also focusing on enhancing the in-restaurant experience to deepen relationships with existing customers. This includes investing in initiatives that improve consistency, efficiency, quality, and hospitality.

Cava's revamped scheduling model has improved productivity by redistributing hours to make shifts less frenetic and reduce staffing holes. This allows team members to deliver a better guest experience with more guest-facing interactions. The company's Connected Kitchen initiative, which includes display screens that help cooks determine food preparation based on historical data, has also improved order accuracy and guest experience scores. The screens are currently live in 42 restaurants and are planned to be rolled out to 250 locations by the end of the year.

Cava's emphasis on hospitality has helped it outpace its fast-casual rivals, with revenue growing 28.2% year over year to $328.5 million in the first quarter of 2025. Same-restaurant sales are up 10.8% year over year, while guest traffic rose 7.5%. The company expects full-year same-restaurant sales growth to be between 6% and 8%, unchanged from prior guidance. Cava also has ambitious expansion plans, aiming to have 1,000 restaurants by 2032.