Good morning. As shopper strain turns into extra seen within the restaurant business, Cava stays centered on progress and constructing its management pipeline.
Cava, the Mediterranean-inspired fast-casual restaurant, reported its Q3 earnings final week. Income elevated 20% to $289.8 million. Nevertheless, the corporate its full-year gross sales progress steering, reporting flat foot site visitors and a 1.9% improve in comparable gross sales—wanting Wall Avenue expectations for two.7%.
Cava’s discount in expectations for the remainder of the 12 months components in a really unsure shopper financial dynamic, CFO Tricia Tolivar instructed me. Amid a authorities shutdown, customers are feeling extra strain. “We took a very thoughtful and judicious approach to our guidance,” Tolivar stated.
In latest earnings calls, the CEOs of Chipotle, Cava, and McDonald’s every pointed to shopper stress—notably amongst youthful or lower-income prospects—as a headwind. These remarks help the concept of a Ok-shaped economic system, the place high-income earners proceed spending broadly whereas lower-income households are tightening their belts, Fortune reported.
Cava has been very measured on value will increase, Tolivar stated. For the reason that finish of 2019, Cava has elevated menu costs by roughly 15%—a price beneath each inflation (about 23%) and typical menu will increase throughout quick-service eating places (about 30%+). The corporate raised menu costs by just one.7% in January and doesn’t anticipate important will increase subsequent 12 months. “There’s pressure on costs for us, but we don’t think in today’s environment it is appropriate to pass that all on to the consumer,” Tolivar added.
Give attention to progress and expertise pipeline
“Despite the challenges the consumer is facing, we have been able to significantly grow market share, and that really underscores the power of the brand and the white space opportunity ahead of us,” Tolivar stated.
Cava’s income has grown from roughly $564 million in 2022 to $954 million in 2024. The corporate’s momentum comes from the power of its model within the fast-growing Mediterranean class, which has been ranked the highest weight loss program for eight consecutive years, she stated.
Presently in 28 states with over 400 eating places, new places are opening with common unit volumes above $3 million, increased than the general chain common, Tolivar stated. To help progress, Cava launched its “Flavor Your Future” initiative to develop inside expertise for brand spanking new management roles. The launch of a brand new assistant common supervisor program is among the first actions beneath this initiative. Present common managers and space leaders consider high-performing candidates in Cava’s eating places to evaluate future management potential, Tolivar stated.
“When I was in New York recently, Brett and I visited different restaurants,” Tolivar stated. “When we walked into the Wall Street restaurant, our general manager said, ‘Hey, let me introduce you to my new assistant general manager; she’s a high-potential team member.’ It was inspiring to see the passion for developing leaders.”
Once I requested how she maintains deal with progress amid unsure occasions, Tolivar emphasised agility and a gradual deal with technique. “Staying committed to our long-term goals—while adapting when needed—will ensure lasting success for our brand and teams,” she stated.
Leaderboard
David G. Anderson was promoted to VP, CFO, treasurer and assistant secretary of Ampco-Pittsburgh Company (NYSE: AP), efficient January 1, 2026. Anderson will succeed Michael G. McAuley, who will assume the function of strategic advisor to the CEO till his deliberate retirement on June 30, 2026. Anderson will even retain his present function as president of Air and Liquid Techniques Company, a wholly-owned subsidiary of Ampco-Pittsburgh. He joined the company in 2010 and brings over 35 years of expertise in finance and operations management to his new, expanded function.
Reza Taleghani was appointed EVP and CFO of Below Armour, Inc. (NYSE: UAA, UA), efficient February 2026. He’ll succeed David Bergman, a 21-year Below Armour veteran, who will step down as CFO. Taleghani has greater than 25 years of expertise. He joins Below Armour from Samsonite Group S.A., the place he has served as EVP and CFO since 2018. Earlier than becoming a member of Samsonite, Taleghani served as President and CFO at Brightstar Corp. He spent over 15 years at J.P. Morgan, holding senior roles in funding banking, industrial banking and asset administration, and served as President and CEO of Sterling Airways A/S in Copenhagen.
Huge Deal
The College of Michigan’s Shopper Sentiment Index fell to 50.3 within the preliminary November studying, down 3.3 factors (6%) from October. The decline was led by a 17% drop in present private funds and an 11% decline in year-ahead anticipated enterprise circumstances, in response to Joanne Hsu, director of surveys of customers on the College of Michigan.
“With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy,” Hsu said in a statement. “This month’s decline in sentiment was widespread across age, income, and political affiliation.”
The index is now at its lowest stage since June 2022, when it reached an all-time low of fifty, in response to an evaluation by S&P International Market Intelligence. Shoppers are struggling to construct and preserve confidence in each the long run and the current. The extended authorities shutdown has intensified considerations concerning the economic system, the information present.
“The contrast between consumer feelings and consumer spending remains the story of 2025,” in response to S&P International Market Intelligence. “Had consumers followed their fears, the economy would have been in recession long ago.”
Courtesy of the College of Michigan
Going deeper
“Dow futures rise as enough Democrats join Republicans to end the shutdown and ‘surrender’ on ACA subsidies” is a Fortune report by Jason Ma.
From the report: “U.S. stock futures were positive on Sunday evening as a bill that will end the longest-ever government shutdown advanced in the Senate. A short-term spending bill cleared a procedural hurdle after seven Democratic senators and one independent voted with Republicans. Futures tied to the Dow Jones industrial average climbed 66 points, or 0.14%. S&P 500 futures were up 0.68%, and Nasdaq futures jumped 1.19%.”
Overheard
“This is an ‘AI Arms Race’ and what is fueling this next chapter of growth is Big Tech spending, and that is not slowing down into 2026.”
—Wedbush Securities analysts wrote in a Sunday business word. The analysts additionally stated that they consider Nvidia’s earnings subsequent week can be a “positive catalyst for tech stocks into year-end as investors continue to underestimate the scale and scope of this transformational spending trend over the next few years.”
