CAVA CEO on Young Diners, Economic Headwinds, and Restaurant Expansion

Consumer Spending Trends

• 📉 CAVA is experiencing a moderation in visits from younger diners (25-34 years old) due to economic headwinds like student loan repayments, increased housing costs, and inflation.
• ⚠️ Despite this, CAVA has been growing market share and has seen its same restaurant sales accelerate on a two-year basis.
• 📊 McDonald's CEO also noted a pullback in spending from low-income diners, even with value meal offerings.

CAVA's Menu Innovation and Value Proposition

• 💡 CAVA continues to innovate with new menu items like chicken schwarma protein and cinnamon sugar pita crisps to excite guests.
• 🇬🇷 The brand remains rooted in Mediterranean culinary heritage, offering healthy and accessible flavors with a modern American spin.
• 💰 CAVA has focused on improving its everyday value proposition, taking less than half the aggregate price increase compared to industry peers since 2019, effectively underpricing inflation.

Restaurant Expansion and Financial Outlook

• 🚀 CAVA opened 17 new restaurants in the quarter, reaching a total of 415, with new locations opening at record volumes.
• 📈 The company maintained its guidance for 68-70 total net new restaurants this year and expects at least 16% compound annual unit growth next year.
• 📈 CAVA's stock, despite recent fluctuations, is seen by the CEO as a long-term play, emphasizing the importance of delivering on commitments and long-term strategy.

Market Performance and Brand Appeal

• 🌍 CAVA is seeing consistent performance across the country, in both urban and suburban markets, and across different regions.
• 🏠 Over 87% of their restaurants are located in the suburbs, indicating a strong appeal in these areas.
• 📈 The company sees significant whitespace opportunity in the 28 states where it currently operates and beyond.