Sweetgreen, Shake Shack and Cava stocks jump on easing rate expectations

9 articles · Updated · Barron's · May 6

Since 27 March, Sweetgreen has surged 46%, while Shake Shack and Cava are up nearly 19% as investors rotate back into growth stocks.
Lower expectations for aggressive Federal Reserve tightening and cheaper valuations have revived interest, but analysts see Shake Shack as better positioned than richly valued Cava or lossmaking Sweetgreen.
The rebound follows a difficult year as inflation, labour and ingredient costs, tariffs and weaker dining demand hurt fast-casual chains, while investors now await earnings and proof that sales growth can last.

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