RBC Capital lowered the firm’s price target on Cava Group (CAVA) to $70 from $80 but keeps an Outperform rating on the shares. The company’s Q3 was below expectations as macro headwinds across fast casual weighed on SSS growth in the quarter and FY25 outlook, where the implied Q4 SSS midpoint is 560 basis points below consensus ahead of the results, the analyst tells investors in a research note. Cava’s demand also softened through the quarter and into Q4, the firm added. RBC notes however that while Cava is clearly not immune to ongoing macro headwinds, those are temporary amid the growing consumer adoption of Mediterranean cuisine and growing brand awareness.
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