CAVA and SG are moving in opposite directions before earnings
CAVA Group Inc (NYSE:CAVA) and Sweetgreen Inc (NYSE:SG) are slated to report fourth-quarter results after the close tomorrow and on Wednesday, Feb. 26, respectively. Below, let's check in with the restaurant groups, as well as competitor Chipotle Mexican Grill, Inc. (NYSE:CMG).
CAVA Cools Before Earnings
CAVA is down 3.3% to trade at $104.37 at last check, trading at its lowest level since December and pacing for a fourth-straight loss. Last week, the shares suffered a 17.5% weekly drawdown, their worst of the year. The stock still sports a 105.2% year-over-year lead though, and has an encouraging history of post-earnings reactions, finishing four of its five next-day sessions higher to average a move of 7.4%, regardless of direction. This time around, the options pits are pricing in a much larger swing of 20.6%.
SG Bounces Back
SG was last seen up 6.4% to trade at $23.22, eyeing their best single-day percentage gain since November. The shares are bouncing off a pullback to their lowest level since May, and remain below all long- and short-term moving averages despite a 103.8% year-over-year lead. SG usually fares well after earnings, settling higher the following session in five out of the last eight quarters. The equity averaged a move of 24.3% over the past two years, regardless of direction, but this time the options pits are pricing in a smaller move of 17.4%.
CMG Eyes 6th-Straight Loss
CMG is down 0.2% to trade at $51.41 at last check, and dropped 18.5% in the last nine months. Should these losses hold, Chipotle stock will etch a sixth consecutive loss, just after marking a third-straight weekly drop. CMG is trading at its lowest level since August after failing to conquer overhead pressure at the $60 level, which snapped into place in January.