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    Sweetgreen Vs. Cava: Wilted Earnings Meet Mediterranean Muscle In Q2

    Benzinga·08/08/2025 16:38:55
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    Second quarter earnings reveal a tale of two bowls as Sweetgreen Inc (NYSE:SG) and Cava Group Inc (NYSE:CAVA) duke it out in the fast-casual restaurant sector.

    Sweetgreen's stock took a 28% nosedive by 11 a.m. ET Friday after a dismal earnings miss that came out after market close on Thursday. CAVA, on the other hand, looks poised for a potential victory lap with its report due Aug. 12. One's serving up losses, the other's grilling for gains. Let's dig into the crunch.

    • Track CAVA stock here.

    Sweetgreen's Soggy Salad Days

    Sweetgreen's second quarter report was a wilted mess. Revenue hit $185.6 million, missing the $194.34 million mark, with a per-share loss of 20 cents against an expected per-share loss of 11 cents. Same-store sales tanked 7.6% year-over-year, a far cry from last year's 3.3% growth.

    CEO Jonathan Neman blamed "macroeconomic pressures" and tough comps, but investors weren't buying it, slashing the stock to $9.20, near its 52-week low. The company also chopped its full-year revenue forecast to $700-$715 million from $740-$760 million, signaling more pain ahead. Analysts like Piper Sandler and TD Cowen cut price targets to $12 and $10, respectively, reflecting a sour outlook.

    Read Also: Sweetgreen Stock Plummets On Disappointing Q2 And Slashed Forecast

    Cava's Mediterranean Mojo

    Cava's second quarter earnings are still under wraps, but the Mediterranean chain's first quarter has set a high bar. It posted a $332 million revenue beat and EPS of 22 cents per share, which beat estimates by 46.67%. Same-store sales were up 10.8%. Analysts expect $286.6 million in second quarter revenue, a 22.7% year-over-year jump, though EPS may dip to 14 cents a share.

    Cava's stock, down 24.88% year-to-date, holds steadier than Sweetgreen's 71.58% plunge. With 116 million shares and a $10.2 billion market cap, CAVA's expansion and loyalty program keep it spicy.

    Valuation and Vibe Check

    Sweetgreen's forward price-to-sales ratio sits at 2.02x, a bargain compared to Cava's lofty 8.64x. Yet, Cava's traffic growth and operational efficiency outshine Sweetgreen's struggles with cost pressures and declining visits. Cava's profitability edge, with lower overhead gives it an edge over Sweetgreen's high-cost model.

    Who Wins The Bowl?

    Sweetgreen's fighting to regain its crunch, banking on 40 new locations and loyalty tweaks. CAVA, with its automation-driven Infinite Kitchen and strong first quarter, looks ready to grill the competition.

    Investors might savor Cava's upside while Sweetgreen needs to toss up better results.

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    Image: Shutterstock