CAVA Group Inc.'s stock plummeted 5.2% during intraday trading on Tuesday, underperforming the broader market. The sell-off came as analysts raised concerns about the company's sales growth trajectory and intensifying competition in the fast-casual restaurant space.
Bernstein analyst Danilo Gargiulo maintained a "Hold" rating on CAVA, citing the potential for sales deceleration due to economic headwinds and market saturation. While acknowledging the company's long-term opportunities, the analyst expressed caution about the near-term growth prospects.
Additionally, the broader technology sector faced selling pressure, with the Nasdaq Composite Index declining over 1% on Tuesday. Investors appeared to be taking profits in high-growth stocks, including CAVA, as concerns mounted over potential tariff hikes and macroeconomic uncertainties.
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