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Cava, Chipotle and other fast-casual restaurant chains are finally hit by consumer slowdown

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Cava, Chipotle and other fast-casual restaurant chains are finally hit by consumer slowdown


Cava stock tumbled 16% in afternoon trading on Wednesday, making it the latest fast-casual chain to feel Wall Street’s wrath after reporting disappointing quarterly sales.

A year ago, eateries like Chipotle Mexican Grill and Cava were reporting double-digit same-store sales growth, even as the broader restaurant industry posted falling traffic and slumping sales. But times have changed. This spring, fast-casual chains saw foot traffic decline as sales slowed down or even shrank.

To explain the downturn, executives have said that diners are “cautious,” in the words of Sweetgreen CEO Jonathan Neman, or dealing with an economic “fog,” according to Cava CFO Tricia Tolivar.

And just as diners are finding reasons why to cut back on their Shake Shack burgers or Chipotle bowls, investors are trimming their fast-casual holdings after rewarding the companies last year for outperforming the rest of the industry. So far in 2025, Shake Shack shares have fallen 16%; Chipotle stock has slid 28%; Cava shares have tumbled 37%; and Sweetgreen stock has plunged 70%. Of the notable publicly traded fast-casual chains, only Wingstop has managed to stay in the green this year, with gains of 20%.

More broadly, investors have grown more cautious about betting on any restaurants, given weak traffic trends and concerns about consumer spending, according to a research note on Sunday from UBS. Even fast-food companies have struggled with the traffic declines and sluggish sales growth, despite their historical reputation as a safer bet during economic uncertainty.

While some fast-casual chains flagged company-specific reasons for their weaker-than-expected results, executives also said that economic uncertainty is weighing on consumers – and hurting their sales.

Generally, fast-casual diners are higher income and more likely to have white-collar jobs. However, Chipotle CEO Scott Boatwright blamed a pullback from low-income consumers for the chain’s same-store sales declines of 4% in the second quarter.

“You have to look no further than what’s going with our competitors with snack occasions or $5 meals. That’s where the consumer is drifting towards, [with] value as a price point, because of low consumer sentiment. I think as sentiment improves, the business will improve. I think that’s probably the biggest headwind we face,” he told analysts on the company’s earnings conference call on June 23.

The University of Michigan’s index of consumer sentiment slid in April to 52.2, one of its lowest-ever recorded readings. It held at that level in May before rising in June to 60.7.

Fast-casual chains are seeing consumers’ economic anxieties in their own research, too.

“Through our regular consumer research, we hear concerns about elevated prices, future job prospects and general anxiety about the future,” Wingstop CEO Michael Skipworth said on the company’s earnings conference call in late July.

The chicken wing chain reported same-store sales declines of 1.9% for the quarter, a dramatic reversal compared to its growth of 28.7% in the year-ago period.

On the company’s earnings conference call on Thursday, Sweetgreen’s Neman said that the chain saw “a more cautious consumer environment starting in April” — coinciding with the drop in consumer sentiment. A “subdued industry backdrop,” particularly in several of the chain’s biggest urban markets, contributed to Sweetgreen’s “really, really rough quarter,” according to Neman.

That’s one reason why the salad chain reported a steeper-than-expected decline in its same-store sales and cut its full-year forecast for the second straight quarter. Sweetgreen executives also attributed the weak quarterly performance to a tough comparison to last year’s steak launch and the transition of its loyalty program.

To improve its value perception among customers, Sweetgreen is increasing its chicken and tofu portions by 25%, improving its chicken and salmon recipes and implementing some promotional pricing, like $13 menu bowl drops for its loyalty program members.

As for Cava, the company had been wowing investors with impressive same-store sales growth since its initial public offering two years ago. But this quarter, the Mediterranean chain reported same-store sales growth of 2.1%, well below Wall Street projections of 6.1%. Executives said that it faced difficult comparisons to the year-ago period’s same-store sales growth of 14.4%, which was fueled by its own steak launch and strong demand at newer restaurant locations that waned this year.

“Cava isn’t so special after all. After blowing out same store sales in Q1 of 10.8%, it fell in line with the industry at 2.1% in Q2. It’s not negative, so that’s helpful,” Tracey Ryniec, stock strategist at Zacks Investment Research, said.

Cava executives also acknowledged that economic concerns are weighing on diners.

“Certainly, we’re operating in a fluid macroeconomic environment and it’s one that sort of creates a fog for consumers where things are changing constantly and it’s hard to see the clear. And during those times, they tend to step off of the gas,” Tolivar said on the company’s conference call on Tuesday evening.

Still, Cava isn’t seeing consumers trade down to cheaper protein options, or experiencing any other deeper business concerns, co-founder and CEO Brett Schulman said. And as it enters the third quarter, its same-store sales have improved, Tolivar said.

And Cava isn’t the only fast-casual eatery anticipating a return to form in the latter half of the year, especially as consumer sentiment improved in June and July.

Chipotle said its traffic started growing again as the burrito chain exited the quarter and continued into July. Sweetgreen has seen “modest” improvement in its same-store sales so far into the third quarter, according to Neman.

And while Wingstop executives said that they’re still seeing weaker consumer demand, the chain is facing easier comparisons to last year’s performance.



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Trade talks: India, EU wrap up 14th round of FTA negotiations; push on to seal deal by December – The Times of India

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Trade talks: India, EU wrap up 14th round of FTA negotiations; push on to seal deal by December – The Times of India


India and the 27-nation European Union (EU) have concluded the 14th round of negotiations for a proposed free trade agreement (FTA) in Brussels, as both sides look to resolve outstanding issues and move closer to signing the deal by the end of the year, PTI reported citing an official.The five-day round, which began on October 6, focused on narrowing gaps across key areas of trade in goods and services. Indian negotiators were later joined by Commerce Secretary Rajesh Agrawal in the final days to provide additional momentum to the talks.During his visit, Agrawal held discussions with Sabine Weyand, Director General for Trade at the European Commission, as both sides worked to accelerate progress on the long-pending trade pact.Commerce and Industry Minister Piyush Goyal recently said he was hopeful that the two sides would be able to sign the agreement soon. Goyal is also expected to travel to Brussels to meet his EU counterpart Maros Sefcovic for a high-level review of the progress made so far.Both India and the EU have set an ambitious target to conclude the negotiations by December, officials familiar with the matter said, PTI reported.Negotiations for a comprehensive trade pact between India and the EU were relaunched in June 2022 after a hiatus of more than eight years. The process had been suspended in 2013 due to significant differences over market access and tariff liberalisation.The EU has sought deeper tariff cuts in sectors such as automobiles and medical devices, alongside reductions in duties on products including wine, spirits, meat, and poultry. It has also pressed for a stronger intellectual property framework as part of the agreement.For India, the proposed pact holds potential to make key export categories such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery more competitive in the European market.The India-EU trade pact talks span 23 policy chapters covering areas such as trade in goods and services, investment protection, sanitary and phytosanitary standards, technical barriers to trade, rules of origin, customs procedures, competition, trade defence, government procurement, dispute resolution, geographical indications, and sustainable development.India’s bilateral trade in goods with the EU stood at $136.53 billion in 2024–25, comprising exports worth $75.85 billion and imports valued at $60.68 billion — making the bloc India’s largest trading partner for goods.The EU accounts for nearly 17 per cent of India’s total exports, while India represents around 9 per cent of the bloc’s overall exports to global markets. Bilateral trade in services between the two partners was estimated at $51.45 billion in 2023.





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Indias Real Estate Equity Inflows Jump 48 Pc In Q3 2025: Report

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Indias Real Estate Equity Inflows Jump 48 Pc In Q3 2025: Report


NEW DELHI: Equity investments in India’s real estate sector jumped 48 per cent year-on-year to $3.8 billion in the July-September period (Q3), a report said on Friday. This growth in inflow was primarily fuelled by capital deployment into land or development sites and built-up office and retail assets, according to the report by real estate consulting firm CBRE South Asia.

In the first nine months of 2025, the equity investments increased by 14 per cent on-year to $10.2 billion — from $8.9 billion in the same period last year.

The report highlighted that land or development sites and built-up office and retail assets accounted for more than 90 per cent of the total capital inflows during Q3 2025.

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On the category of investors, developers remained the primary drivers of capital deployment, contributing 45 per cent of the total equity inflows, followed by Institutional investors with a 33 per cent share.

CBRE reported that Mumbai attracted the highest investments at 32 per cent, followed by Pune at around 18 per cent and Bengaluru at nearly 16 per cent.

Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE, said that the healthy inflow of domestic capital demonstrates the sector’s resilience and depth.

“In the upcoming quarters, greenfield developments are likely to continue witnessing a robust momentum, with a healthy spread across residential, office, mixed-use, data centres, and I&L sectors,” he added.

In addition to global institutional investors, Indian sponsors accounted for a significant part of the total inflows.

“India’s ability to combine strong domestic capital with global institutional participation will remain a key differentiator in 2026 and beyond,” added Gaurav Kumar, Managing Director, Capital Markets and Land, CBRE India.

CBRE forecasts a strong finish for the investment activity in 2025, fuelled by capital deployment into built-up office and retail assets.

For the office sector, the limited availability of investible core assets for acquisition indicate that opportunistic bets are likely to continue gaining traction, the report noted.



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EY and Microsoft launch AI skills passport: Free program to train youth in AI; focus on career growth – The Times of India

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EY and Microsoft launch AI skills passport: Free program to train youth in AI; focus on career growth – The Times of India


EY and Microsoft on Saturday launched the AI Skills Passport, a free online learning initiative aimed at equipping Indian students and early-career professionals with essential artificial intelligence (AI) skills. The program targets individuals aged 16 and above and is designed to bridge the country’s growing AI skills gap, according to an EY statement, ANI reported.Part of a global effort that has already engaged over 40,000 participants worldwide, the AI Skills Passport offers self-paced learning modules spanning around 10 hours, available in both English and Hindi. The curriculum covers AI fundamentals, responsible AI, and practical applications across sectors including healthcare, finance, and technology. Participants also receive guidance on job readiness, including resume tips, interview support, and networking insights.Learners who complete the program are awarded a verifiable digital badge, enhancing their professional profiles. The initiative is part of EY Ripples, EY’s global corporate responsibility programme, and will partner with not-for-profit organisations to ensure students from economically weaker backgrounds have access to mentorship, learning, and career guidance.Monesh Dange, Partner and Leader, Alliances and Ecosystems, EY India, said, “In an era where AI is revolutionising work, the AI Skills Passport addresses India’s urgent need for skilled talent. Together with Microsoft, we aim to ensure the program is accessible and impactful at scale.”Bhaskar Basu, Enterprise Partnerships Leader, Microsoft India & South Asia, added, “AI is transforming India’s digital economy, and youth are at its core. The AI Skills Passport brings high-quality AI learning to everyone, accelerating Microsoft’s goal to equip 10 million Indians with AI skills by 2030.”





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