Mediterranean Fast Food Chain Cava Loses $500 Million in Market Value in One Day

Shares of Mediterranean fast-casual chain Cava Group Inc. (NASDAQ: CAVA) plunged 5.68% on the New York Stock Exchange, closing at $62.61.

In a single day, approximately $390 million—about KRW 500 billion—vanished from its market capitalization, reducing the company’s valuation to roughly $7.26 billion, or around KRW 9 trillion.

Investor sentiment was rattled after Cava disclosed that around January 21, CEO Brett Schulman and other senior executives sold more than 20,000 shares—about $1.46 million worth—marking roughly KRW 2 billion in insider sales. Earlier in January, Bernstein trimmed its price target for Cava from $80 to $75 while maintaining an “Outperform” rating, signaling that Wall Street still backs the company’s long-term growth prospects despite near-term performance pressures.

Cava Group is a growth-oriented fast-casual restaurant chain in the U.S. offering Mediterranean bowls and wraps. Since its 2023 IPO on the NYSE, the company has pursued an aggressive expansion strategy and now operates over 400 locations as of 2025. While quarterly revenue in 2025 rose about 20% year-over-year and same-store sales remained positive, high valuation levels and volatility in earnings and guidance are cited as key factors driving the stock’s sharp price swings.