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Jim Cramer Reveals Why CAVA Group, Inc. (CAVA) Is Struggling

We recently published Jim Cramer Just Couldn’t Stop Talking About These 13 Stocks. CAVA Group, Inc. (NYSE:CAVA) is one of the stocks Jim Cramer recently discussed.

CAVA Group, Inc. (NYSE:CAVA)’s shares have lost a whopping 41% year-to-date due to struggling sales that have led to disappointing earnings. August has been a particularly poor month for the stock as it sank by 16.6% following a second-quarter earnings report, which saw CAVA Group, Inc. (NYSE:CAVA)  cut its midpoint same-store sales growth guidance by two percentage points to 5%. In his previous comments about the firm, Cramer has maintained that high menu prices are the reason behind CAVA Group, Inc. (NYSE:CAVA)’s struggles. He kept at it this time around as well:

“They’re too high. Costs too much. Versus when you go to Brinker and you get that ten dollar burger with a three for me, they use top shelf. . .”

Here are Cramer’s earlier thoughts about CAVA Group, Inc. (NYSE:CAVA):

“[On recent earnings] Yeah and I do think that when we look at Cava, not mentioned on the call, it’s expensive. You’re talking about 15 smackers versus go and get a smash burger a couple of drinks, a diet coke. Yeah but Chilli’s is ten dollars.

“And Cava, unfortunately is not cheap. It just costs too much for a dinner for a family of five.”

While we acknowledge the risk and potential of CAVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CAVA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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  • 140 Metas
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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