Consumers were pulling back spending across all segments in the first quarter. The traffic-tracking research firm Placer.ai has data that might show where those consumers are going.
To Cava, apparently.
It was a rough first quarter for most across quick-service, fast-casual and casual-dining. brands. But one restaurant chain left to report earnings on Thursday is expected to show some pretty positive numbers.
Placer.ai on Wednesday said Cava visits increased nearly 20% during the first quarter, while fast-casual chains overall saw visits fall 0.1% during that period.
In that same report, however, Placer.ai said Sweetgreen’s visits also grew 11.1% during the first quarter. Last week, Sweetgreen reported same-store sales down 3.1% for the quarter, including a 6.5% decline in traffic and product mix. Consumer caution tied to economic news, in particular, was blamed.
The difference, however, is that Placer.ai data includes new restaurant visits, rather than same-restaurant sales. Sweetgreen had about 11% more units at the end of the first quarter, compared with a year ago.
Placer.ai data indicated a 1.4% decline in year-over-year visits per location in the first quarter, which is more directionally in line with the same-store sales results, the firm said.
Will the prediction be different for Cava?
Placer.ai contends that Cava has successfully broadened its audience.
“Between Q1 2022 and Q1 2025, Cava steadily broadened its reach among working and middle-class ‘Blue Collar Suburbs’ and ‘Suburban Boomers’ consumer segments,” the report said. “During the same period, it also gained more traction with the affluent ‘Upper Suburban Diverse Families’ segment—while holding on to its substantial share of ‘Wealthy Suburban Families.’
“This suggests that, even as Cava expands its reach among a wider range of suburban visitors, it has maintained its core audience,” the report continued. “While a substantial portion of wealthy customers remains, the chain has effectively opened itself up to a larger and more diverse pool of visitors.”
At the end of the fourth quarter, Cava projected same-store sales would grow between 6% to 8% in fiscal 2025. Last year, the chain reported same-store sale growth of 13.4% for the year, including an 8.7% increase in guest traffic. That included a strong fourth quarter, when same-store sales grew more than 21%, including a nearly 16% increase in traffic.
But other high-flying brands, like Wingstop, for example, also suffered a bigger-than-expected hit from bad weather, the wildfires in California and the chaotic economic news that has caused consumers to cut back on spending.
Can Cava buck the trend?
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