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Cava (CAVA) is doing something other fast-casual chains are struggling to do: bringing in customers.
As macro uncertainty persists due to the impact of President Trump's tariffs, contributing to the second-lowest consumer sentiment reading on record, Cava's results showed strength.
The Mediterranean-inspired chain reported on Thursday that same-store sales grew 10.8% in the first quarter and foot traffic increased 7.5%. Cava's better-than-expected sales stood out against warnings of a consumer slowdown from peers like Chipotle (CMG) and Sweetgreen (SG).
The brand aims to "be a port in that uncertainty and inflationary storm for our guests," Cava CEO Brett Schulman told Yahoo Finance (video above). He added that US consumers are "becoming more selective, but they're still selecting to choose to eat at Cava."
Still, Cava stock has experienced similar pressure as shares of peers in recent months and is 44% off its November 52-week high of $172.43. Year to date, shares of Cava are down 14%, while Shake Shack (SHAK), Chipotle, and Sweetgreen have fallen 8%, 13%, and 52%, respectively.
Fast-casual leader Chipotle didn't have the same luck this past quarter, even though the average cost of its chicken burrito or bowl is around $10 nationally, which is lower than Cava's average order price of around $14.50.
Chipotle's same-store sales dropped 0.4% year over year, the first decline since COVID-19 caused the chain to shut stores in the second quarter of 2020. Transactions fell 2.3%, the first decline since 2022.
"We talked to consumers broadly about what is causing them to sit on the sideline in this economy," Chipotle CEO Scott Boatwright told Yahoo Finance in an interview. "It's really trying to save money [and] uncertainty around what's going on with the global economy."
Read more: What Trump's tariffs mean for the economy and your wallet
Other fast-casual chains faced similar challenges. Sweetgreen's same-store sales growth fell 3.1%, which CEO Jon Neman said was "reflective of a broader consumer slowdown."
Shake Shack saw same-store sales growth of 0.2%, but foot traffic fell 4.6% in the quarter. CFO Katherine Fogertey attributed the lower traffic to "unfavorable weather and broader industry pressures."
"It's always a market share battle in restaurants," William Blair analyst Sharon Zackfia told Yahoo Finance. Zackfia added that "Cava has been winning," as casual dining options are offering "pretty sharp price points," allowing them to take share from fast food chains and each other.
