CAVA Group Inc. (NYSE: CAVA) shares plummeted 7.7% in after-hours trading on Tuesday, following the company's fiscal fourth-quarter 2024 earnings release and 2025 outlook that fell short of expectations.

The Mediterranean fast-casual restaurant chain reported adjusted earnings per share of $0.05 for Q4, missing analyst estimates of $0.06 per share. While revenue of $225.1 million beat expectations of $223.6 million, CAVA's fiscal 2025 guidance was softer than analysts had anticipated.

For the full year 2025, CAVA forecasts same-store sales growth of 6% to 8%, below consensus estimates. The company also guided for restaurant-level profit margins between 24.8% and 25.2%, reflecting some margin compression compared to fiscal 2024 levels.

Analysts expressed concerns about CAVA's sales growth trajectory and intensifying competition in the fast-casual dining space. In a note, Bernstein analyst Danilo Gargiulo maintained a "Hold" rating on the stock, citing the potential for sales deceleration due to economic headwinds and market saturation.

The after-hours selloff in CAVA's shares was likely exacerbated by broader weakness in the technology sector, with the Nasdaq Composite Index declining over 1% on Tuesday amidst concerns over potential tariff hikes and macroeconomic uncertainties.