The company is facing a class action lawsuit alleging it issued misleading statements about its growth prospects. This legal action follows disappointing sales results and a downward revision of its 2025 financial guidance. The company's performance is being negatively impacted by a more cautious consumer environment, which is affecting consumer demand. These developments have increased scrutiny on the company's communications and the risks to its performance expectations, casting doubt on its near-term investment potential compared to a value-driven competitor.