CAVA Group Inc. (NYSE: CAVA) shares tumbled 5.07% in after-hours trading on Thursday, following the release of its first-quarter 2025 earnings report. The Mediterranean fast-casual restaurant chain posted better-than-expected results but maintained a conservative outlook for the full year, raising concerns among investors about its growth trajectory.

The company reported Q1 revenue of $331.83 million, surpassing the analyst consensus of $326.88 million. Adjusted earnings per share came in at $0.22, significantly beating the estimated $0.14. CAVA also posted impressive same-restaurant sales growth of 10.8%, outpacing expectations of 10.4%. Despite these strong results, the stock's sharp decline suggests that investors were looking for more.

A key factor contributing to the sell-off appears to be CAVA's full-year 2025 guidance. While the company raised its forecast for new restaurant openings to 64-68 from the previous 62-66, it maintained its same-restaurant sales growth projection at 6-8%. This outlook falls short of the FactSet analyst consensus of 8.4%, potentially indicating a slowdown in growth compared to the robust 10.8% achieved in Q1. The conservative guidance, coupled with the stock's recent strong performance, may have prompted investors to reassess the company's valuation, leading to the after-hours plunge.