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Cava’s sales forecast misses estimates, but fast-casual chain says diners are spending more - MarketWatch

1. Cava's same-store sales forecast is 6% to 8%, below 8.7% expected. 2. Fourth-quarter sales rose 28.3% year-over-year, surpassing analyst expectations. 3. Cava's stock bounced back after an initial drop, closing up 1.7%. 4. Consumer spending at Cava is strong despite market challenges and pricing pressures. 5. Cava is gaining traffic from lower-income consumers more than wealthier ones.

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FAQ

Why Neutral?

Despite missing sales growth estimates, strong quarter results indicate resilience. Historical trends show stocks can stabilize post-earnings even with guidance misses.

How important is it?

The article addresses both immediate sales performance and future forecasts, influencing investor perception. Given analysts’ high expectations, future growth potential remains uncertain but still relevant.

Why Short Term?

The forecast impacts immediate investor sentiment; the next earnings report will be critical. Short-term reactions often follow guidance adjustments closely.

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