Good morning. As automation positive factors momentum within the meals service business, Mediterranean restaurant chain Cava—identified for fan favorites like pita chips—is making its first main funding within the area.
Cava has invested $5 million in Hyphen—a foodservice platform that automates culinary operations comparable to meal manufacturing at meeting stations—and dedicated an extra $5 million, topic to phrases. The $25 million funding spherical was additionally backed by Chipotle’s Domesticate Subsequent enterprise fund, which beforehand invested $15 million in July 2024.
“We imagine that expertise ought to improve the human expertise, not exchange it, and Hyphen’s gear does simply that,” Cava CFO Tricia Tolivar advised me. After months of evaluating Hyphen and related ideas, the corporate is assured this partnership is a brilliant transfer, she added.
Deloitte’s current “State of AI in Eating places” survey—based mostly on interviews with 375 restaurant executives throughout 11 international locations—discovered that 8 in 10 anticipate to enhance their AI investments within the subsequent fiscal 12 months. Informal eating manufacturers, specifically, prioritize advantages comparable to optimizing meals preparation.
At Cava, Hyphen shall be used on what Tolivar calls the “second-make line”—a back-of-house station the place employees put together all bowls and pitas for digital supply and pickup. The system lets workers assemble a bowl or pita on the highest degree whereas robotically producing extra bowls beneath from the identical components, boosting pace and digital order accuracy, she mentioned. “Most significantly, it’s actually about making our workforce members’ lives simpler,” Tolivar mentioned. Cava remains to be testing the expertise and expects to roll it out in a number of months.
‘Whitespace alternative’
For its fiscal second quarter ending on July 13, Cava reported on Tuesday income of $278.2 million, up 20.3% 12 months over 12 months. About 37% of gross sales have been digital. Identical-restaurant gross sales rose 2.1%, beneath analyst estimates, however the firm outperformed the broader business development of same-store declines. Cava lowered its same-store gross sales forecast to 4%–6%, down from 6%–8%, whereas sustaining expectations for restaurant-level revenue margins of 24.8%–25.2% and adjusted EBITDA of $152 million–$159 million.
The corporate added 16 web new eating places within the quarter, bringing its whole to 398—a 16.7% enhance from final 12 months. Cava raised its 2025 web new openings forecast to 68–70, up from 64–68, and continues to focus on 1,000 areas by 2032.
Alex Fascino, an fairness analyst at CFRA Analysis, commented on Cava’s enlargement plans in a Tuesday analysis observe. “In our view, this strategic pivot towards prioritizing enlargement over same-store gross sales development validates the substantial whitespace alternative and unit development potential within the present market backdrop,” he wrote.
Cava’s 2025 new-restaurant class is on monitor to ship common unit volumes (AUVs) above $3 million, forward of expectations. General AUV for Q2 2025 was $2.9 million, up from $2.7 million a 12 months earlier.
The AUV or common gross sales for every location is growing throughout the nation, Tolivar mentioned. “Not solely are you seeing it in Detroit, Indianapolis, and Chicago, however in smaller cities like Lafayette, Louisiana or Burlington, North Carolina.”
Tolivar additionally revealed a brand new taste of the Cava’s common pita chips—cinnamon sugar served with a aspect of honey.
“Among the best components about being within the workplace is spending time with our cooks within the kitchen,” she mentioned. “I’ve been a part of this journey and the evolution, and I feel they’ve nailed it.”
Sheryl Estrada
sheryl.estrada@fortune.com
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Fortune 500 Energy Strikes
Aunoy Banerjee was appointed EVP and CFO of Residents Monetary Group, Inc. (No. 341), efficient Oct. 24. As beforehand introduced, present CFO John Woods will depart the financial institution on Aug. 15. Chris Emerson, EVP and head of company planning and enterprise finance, will function CFO in the course of the interim interval. Banerjee joins Residents from Barclays, the place he at present serves as CFO of Barclays Financial institution PLC, main a multifunctional workforce. Earlier than Barclays, Banerjee served in finance and transformation roles at State Avenue over eight years, most not too long ago as head of investments and third-party administration and chair of State Avenue India. He additionally served as chief transformation officer. Banerjee beforehand spent 11 years at Citi in a number of roles, together with enterprise unit CFO for Capital Markets and Securities Providers.
Each Friday morning, the weekly Fortune 500 Energy Strikes column tracks Fortune 500 firm C-suite shifts—see the newest version.
Extra notable strikes
Aric McKinnis was promoted to SVP and CFO of FormFactor, Inc. (Nasdaq: FORM). McKinnis succeeds Shai Shahar, who resigned from these positions efficient Aug. 8. Shahar will function an government advisor by way of Dec. 31. McKinnis, who joined FormFactor in August 2019, serves as its VP and company controller and was beforehand company controller at MKS Devices. Earlier, he served in numerous exterior audit roles at Deloitte, together with audit supervisor
David Hedley was appointed CFO of Bramshill Investments, another asset administration agency. Hedley has been working because the agency’s chief technique officer since 2021. He replaces the agency’s former CFO, Gina Cifello, who retired earlier this 12 months. Hedley has over 34 years of expertise. Earlier than becoming a member of Bramshill, he was a principal and senior managing director at Ernst & Younger Capital Advisors, the place he led the Expertise Funding Banking Group. Previous to EY, he was a senior funding banker at Canaccord Genuity, UBS Funding Financial institution, Thomas Weisel Companions and Merrill Lynch.
Huge Deal
In accordance with July inflation knowledge, the Shopper Worth Index (CPI) rose 0.2% month over month, and a pair of.7% 12 months over 12 months—matching June’s annual tempo. Core inflation, which excludes meals and power, edged greater to three.1% yearly, remaining nicely above the Federal Reserve’s 2% goal. Flat headline inflation and declining power costs fueled expectations for a possible price lower in September. Nonetheless, analysts cautioned that persistent service-sector prices and attainable future tariff impacts may restrict additional easing in 2025. Whereas markets rallied on the information, Fed officers indicated they continue to be centered on upcoming jobs stories earlier than making selections on extra cuts, Fortune reported.
Going deeper
“Companies of all sizes ought to spend money on ‘double literacy’ for his or her workers, and themselves,” Walther writes. “Past AI literacy, that is the time to develop a strong understanding of our human skillset, and the way it’s impacted by the rising synthetic treasure chest.”
Overheard
“I disdain company communicate and owe greater than the usual ‘I need to spend extra time with my household and Lauren is a good visionary product-centric strategic operator.'”
—Life360 co-founder Chris Hulls wrote in a sign-off weblog publish. Hulls ignored authorized recommendation and the boilerplate, “I need to spend extra time with my household,” in an announcement about why he’s leaving the CEO position, Fortune reported.
