Fast casual sales slow across major chains

The fast casual sector faces a consumer slowdown as several chains report softer sales and tepid traffic.

Cava Chipotle Sweetgreen See Slower Sales

Cava reported 2.1% same-store sales growth for the quarter, well below Wall Street expectations of about 6.1%, and its stock dropped roughly 16% in afternoon trading. Chipotle also faced softer momentum with a 4% decline in same-store sales, while Sweetgreen cut its full-year forecast for the second straight quarter. Wingstop stood out as an exception, with gains this year of about 20% in contrast to broader declines across peers.

Executives say consumer caution and a cloudy macro environment are weighing on demand. Cava noted tough comparisons to last year’s steak launch and a softer backdrop, while Chipotle pointed to a pullback from lower-income shoppers and a greater reliance on value messaging. UBS notes weak traffic across the sector as investors reassess fast casual bets. Still, some signs of life exist: Chipotle said its traffic began growing again toward the end of the quarter and Sweetgreen reported modest improvement into the third quarter.

The data highlights a broader shift in consumer behavior, where value and confidence drive decisions more than novelty. Chains are juggling promotions with margins, and the push for value could squeeze profitability if price sensitivity remains high. The challenge is not just one quarter of results, but a potential change in how households allocate dining budgets as inflation and job prospects remain uncertain. This environment tests the resilience of brands that had led the category with strong growth during the pandemic years.

Highlights

The next earnings cycle will reveal if this slowdown is temporary or a lasting shift in dining habits.