Jim Cramer Said Quantum Computing Could Quench AI’s Thirst For Water As He Discussed These 14 Stocks 

2. CAVA Group, Inc. (NYSE:CAVA)

Number of Hedge Fund Holders In Q1 2025: 41

CAVA Group, Inc. (NYSE:CAVA)’s shares are among the worst performers on the market as they have lost 40% year-to-date. The stock fell by 16.6% in August after the firm’s second quarter earnings report saw its revenue miss estimates by $5 million, and it slashed its full-year midpoint same-store sales guidance to 5% from an earlier 7%. Cramer remarked that one reason CAVA Group, Inc. (NYSE:CAVA) is suffering because its prices are too high:

“[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.”

Later during the day, Cramer commented on CAVA Group, Inc. (NYSE:CAVA)’s pricing in detail:

“Brett Schulman, who’s a very perceptive man, the CEO of CAVA said, ‘We have a fluid… macroeconomic climate.’ He told Restaurant Business, which is an excellent trade publication, that the macro climate was like a fog, a fog that the consumer’s trying to find her way through… He goes on to say, ‘I think the consumer is less firm-footed, less ebullient than they were last year… To me, it’s pretty clear what’s going on. CAVA and Sweetgreen have to lower their prices or give us a couple of much lower-priced dishes if they want to turn things around. For now, they’re pricing themselves out of this American market. I get why they’re reluctant to cut prices. What business wants to lower margins?…

Now of these two problem children, Sweetgreen and CAVA, I think CAVA is in much better shape. It has a better balance sheet. It means CAVA can afford to take its medicine, cut prices to bring the customer back. I think they will do it, which is why, after all this, call me a buyer of CAVA. There’s nothing wrong with taking the medicine…

The problem is, unlike McDonald’s, they’re either maybe too proud or too obtuse, I don’t know, to realize that the consumer’s gotten serious about avoiding high-priced foods, including theirs, even though the food is fresh and good.”