NEW YORK, July 20, 2026, 5:06 p.m. EDT — The NYSE main session has finished, with after-hours activity ongoing.
- The stock last traded at $63.51, taking about $631 million off its market capitalization.
- The FDA has canceled an earlier positive test result for lettuce; the agency’s probe remains active.
- CAVA lost 4.6% over the past week, with the decline coming in spite of an upgraded rating from Morgan Stanley NYSE:MS.
CAVA Group, Inc. NYSE:CAVA slid 7.7% to $63.51 on Monday, posting the sharpest drop among fast-casual firms observed.
The decrease erased approximately $631 million from the company’s market value, corresponding to 54% of CAVA’s anticipated revenue for fiscal 2025.
This signals investors. The trend reflects a broader disruption to traffic, rather than a challenge isolated to CAVA.
CAVA does not appear in the FDA’s outbreak advisory. Barron’s states there is no confirmed association with the chain.
On Sunday, the FDA reported that what was initially considered a positive sample turned out to be a false result. Additional testing of the product produced no confirmed positive findings.
Officials remain focused on shredded iceberg lettuce served at Taco Bell, run by Yum! Brands, Inc. NYSE:YUM. The latest advisory states that 1,644 people have become ill, with 94 hospitalized and no reported deaths.
Monday’s snapshot underlines that valuation intensified the concern.
| Company | Last price | Monday move | P/E |
|---|---|---|---|
| CAVA Group, Inc. NYSE:CAVA | $63.51 | fell 7.7% | 122.1x |
| Sweetgreen, Inc. NYSE:SG | $6.65 | declined 6.1% | 55.4x |
| Chipotle Mexican Grill, Inc. NYSE:CMG | $33.13 | lost 3.8% | 29.6x |
| Shake Shack Inc. NYSE:SHAK | $56.97 | off 1.8% | 58.1x |
Displayed here are the latest market numbers for Monday.
CAVA’s earnings multiple was more than quadruple Chipotle’s, providing the company with less room for error if customer numbers drop.
Last week, CAVA stock declined 4.6%, moving from $72.18 to $68.85. The total drop since July 10 reached 12.0% as of Monday.
Shares fell after Morgan Stanley upgraded the stock last Wednesday. Brian Harbour, an analyst at the firm, increased his price target to $90 from $86, referencing higher foot traffic, additional units, and better performance at new stores.
CAVA announced Q1 revenue of $434.4 million, a rise of 32.2%. Same-restaurant sales advanced 9.7%, driven by a 6.8% uptick in guest traffic. The chain’s operations outpace a large share of its restaurant industry competitors.
Chief Executive Brett Schulman said the results showed the “structural strength of our business.” CAVA added 20 restaurants over the quarter. Business Wire
Management now expects to open 75 to 77 new restaurants in 2026. Forecasts for same-restaurant sales show growth between 4.5% and 6.5%. The company provided guidance for adjusted EBITDA ranging from $181 million to $191 million.
No CAVA investor events are scheduled before Friday, according to the calendar. Market attention has turned to potential FDA updates as the next expected catalyst.
Risks: Further decline in restaurant spending or new outbreak news could decrease customer traffic. At a price multiple of 122, any earnings disappointment would carry a higher cost.
Related articles: NYSE:MS
