Consumer Caution Hits Fast-Casual Chains: Q2 Earnings Reveal Widespread Slowdown

Major fast-casual restaurant chains, including Cava, Chipotle, and Sweetgreen, are experiencing a significant slowdown in sales and foot traffic, as cautious consumers grapple with economic uncertainty. This shift marks a stark contrast to the double-digit growth seen just a year ago, leading to substantial stock declines for many industry leaders.

Latest financial reports for the second quarter of 2025 show Cava’s same-store sales growth plummeted to 2.1% from a projected 6.1%, causing its stock to tumble 37% year-to-date. Chipotle reported a 4% decline in same-store sales, attributing it to a pullback from lower-income consumers seeking value. Sweetgreen also faced a ‘really, really rough quarter,’ with steep declines and a cut to its full-year forecast, contributing to a staggering 70% drop in its shares this year.

Executives across the sector, including Sweetgreen CEO Jonathan Neman and Cava CFO Tricia Tolivar, point to an ‘economic fog’ and heightened consumer anxiety regarding future job prospects and elevated prices. This sentiment is echoed by the University of Michigan’s consumer sentiment index, which remained low in April and May before a modest rise in June. Only Wingstop has managed to stay in the green this year, despite reporting its own same-store sales declines.

In response, chains are adapting: Sweetgreen is increasing portion sizes and offering promotional pricing to improve value perception. While the overall outlook remains challenging, some companies like Chipotle and Cava reported a modest improvement in traffic and sales as they entered the third quarter, signaling a potential, albeit cautious, recovery.

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