Cava Plunges After Cutting Outlook on Sales Slowdown (4)

Cava Group Inc.’s shares plummeted after the company trimmed its annual sales guidance, as skittish diners spent less on restaurant meals.

The fast-casual Mediterranean chain now says sales at established locations will expand 6% at most this year, while it previously forecast an increase of as much as 8%. The cut came after quarterly sales grew at the slowest rate since the first quarter of 2021, according to data compiled by Bloomberg.

Cava’s shares fell a record 22% at 9:31 a.m. Wednesday in New York.

Sales at established restaurants rose 2.1% for the second quarter, growth that stands ...