I’ve been silent for too long…
Just before the election, I sat down with one of Trump’s closest advisors.
And for the first time in a long time, I felt hopeful. Hopeful that someone would finally confront the most dangerous flaw in America’s financial system. The flaw I’ve been warning about for more than 15 years.
Trump didn’t fix it. He didn’t even try.
Now his failure has become a crack.
And if I’m right, we’re much closer to a full-blown rupture than anyone realizes.
Let me be clear: this isn’t about politics. It’s not about red versus blue. It’s about reality. And the reality is, the very Americans who believed in the promise of a financial fix…
The people who worked, saved, and voted for change are about to get blindsided.
Because instead of stabilizing our system, Trump has set the stage for something even worse.
A wave of fiscal destruction that could gut retirement accounts, decimate portfolios, and leave millions with no way to recover.
That’s not something I say lightly.
I’ve spent my entire career helping people get ahead of the biggest wealth shifts in the world.
My team and I have been out in front of it all… the fall of Fannie Mae and Freddie Mac, America losing its AAA credit rating, and the rise of inflation.
But I got this one wrong. Dead wrong. And now I’m doing everything I can to help make amends and prepare you for what could happen next.
That’s why I’ve just released a critical emergency broadcast called Breaking Point.
Watch now and you’ll discover:
- Why the most dangerous flaw in America’s financial system has reached a point of no return
- How Trump’s recent actions are accelerating the coming crisis
- And what I believe you must do now to avoid the worst of it – and potentially even profit from the shift
In the broadcast, I also name three investments you can make today… assets that could see a huge influx of capital when this situation escalates. Please don’t miss this.
Let me show you exactly what we’re doing to prepare.
Good investing,
Porter Stansberry
CAVA's Honeymoon Ends With a 16% Stock Drop
Written by Chris Markoch. Published 8/13/2025.
Key Points
- CAVA beat EPS estimates but missed on revenue and posted weaker-than-expected same-store sales growth at 2.1%.
- Flat traffic and lowered same-store sales guidance drove a 16% stock sell-off despite continued restaurant expansion.
- With 398 locations and a goal of 1,000 by 2032, CAVA remains in early expansion mode despite short-term consumer headwinds.
Restaurant stocks have somewhat mirrored artificial intelligence (AI) stocks this earnings season. That is, investors are not taking a one-size-fits-all approach. In the case of AI, investors are looking for companies that show an ability to monetize the technology. In the case of restaurant stocks, investors are rewarding companies that demonstrate their value proposition.
That explains the sell-off in CAVA Group Inc. (NYSE: CAVA) after the company’s second-quarter earnings report. CAVA stock is down over 16% in midday trading following its report after the market closed on August 12.
Overall results were mixed but leaned positive. Revenue came in at $280.62 million, just shy of the $285.65 million estimate, while earnings per share (EPS) of 16 cents topped expectations of 13 cents.
The closely watched same-store sales metric came in at 2.1% in the quarter, lower than the initial estimate of 6.1% growth. However, the company's guidance sent CAVA stock lower.
The company lowered its full-year same-store sales growth outlook from 4-6% to 3-4%, citing flat year-over-year traffic and softer demand from lower-income consumers. While traffic was unchanged compared to last summer, it improved sequentially from the first quarter. Management said higher-income markets remain resilient, but the broader consumer picture is “putting a fog” over the company’s near-term outlook.
It's Never Just 1 Reason
In the immediate aftermath of an earnings report, many analysts try to find “the one thing” that caused a good or bad report. However, there are frequently many reasons for a company’s good or bad results.
For CAVA, part of the slower same-store sales growth came from tougher comps after last summer’s introduction of steak, one of the company's most successful menu launches.
Management noted that this was particularly true in markets where steak performed exceptionally well. While the tougher comp wasn’t the only factor in this quarter’s softer numbers, it was a meaningful headwind alongside broader consumer softness.
A Profitable and Growing Company
The company had some positive news on the growth front. It opened 16 net new restaurants, expanding its footprint to 398 locations across 28 states and the District of Columbia.
The takeaway for investors is that CAVA is still in the early stages of its national buildout. The company has a goal of 1,000 restaurants by 2032. That will mean broader national coverage and growth that won’t depend on raising prices
A Young Stock With the Privilege of Expectations
After a reaction to this quarter’s earnings report, it’s important to note that CAVA has only been publicly traded since 2023. That means analysts and investors are still getting their minds around a proper valuation.
With many young stocks, CAVA stock popped based on enthusiasm for how its Mediterranean-focused menu could fill a key niche in the fast-casual market. CAVA stock more than doubled in its first year, covering June 2023 to June 2024. Then the stock nearly doubled again in the six-month period from June 2024 to December 2024.
That's incredible growth, which also pushed the stock’s valuation to levels that were likely going to be unsustainable. Even after this sell-off, CAVA stock still has a price-to-earnings (P/E) ratio of over 59x. That’s more than double the sector average of around 28x.
It’s safe to say, the company’s honeymoon period is over. However, that doesn’t mean the stock is untouchable.
If You Would Buy the Food, Buy the Dip
The unsettling news from the earnings report is that CAVA Group is saying what many investors have suspected. There is a divide between the company’s higher-end and lower-end consumers. The latter are under pressure, which is clouding the company’s outlook.
However, that’s different from saying that consumers are rejecting the company’s health-conscious menu out of hand. That means the revenue drop may be cyclical.
CAVA stock may fall further in the short term, but that should create a buyable dip for investors. One reason for that is the expectation that the Federal Reserve will cut interest rates in September.
The CME FedWatch tool now gives that rate cut a 99.9% possibility. That would likely relieve some consumer pressure. Revenue growth and a more reasonable valuation could spark an end-of-year rally.
The CAVA Group analyst forecasts on MarketBeat show that analysts feel the same way. Five analysts have sharply lowered their price targets for CAVA stock, and each target is below the consensus price of $103.56.
This email communication is a sponsored email sent on behalf of Porter & Company, a third-party advertiser of The Early Bird and MarketBeat.
If you need help with your newsletter, please don't hesitate to email our U.S. based support team at contact@marketbeat.com.
If you no longer wish to receive email from The Early Bird, you can unsubscribe.
© 2006-2025 MarketBeat Media, LLC. All rights protected.
345 N Reid Pl., Suite 620, Sioux Falls, SD 57103-7078. USA..
0 Response to "America Betrayed"
Post a Comment