Wall Street Breakfast CAVA slides on sales miss
Aug 13, 2025
CAVA's stock takes a hit as sales fall short of expectations despite overall revenue growth. Brazil steps in with a hefty $5.6 billion support package for exporters facing U.S. tariffs. Meanwhile, Sam Altman plans to back Merge Labs, which could challenge Musk's Neuralink in the rapidly evolving brain-computer interface sector. Plus, major corporations are making waves with strategic moves and legal challenges that hint at an intriguing financial landscape ahead.
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Cava's Growth Misses Expectations
- Cava's Q2 revenue rose 20% but same-store sales grew only 2.1%, well below the 6.1% consensus.
- Management trimmed comparable-sales guidance to 4–6% and lowered expected new openings, signaling moderated growth expectations.
Margins And Unit Growth Paint Mixed Picture
- Cava's adjusted EBITDA beat estimates but restaurant-level margin slipped to 26.3%, and net income declined year-over-year.
- The company still expects ~152–158M adjusted EBITDA but lowered unit growth to 64–68 openings, reflecting margin and growth trade-offs.
Brazil Announces Exporter Support
- Brazil unveiled about $5.6 billion in credit and support to help exporters after U.S. tariff hikes.
- The package aims to offset steep tariff increases that raised some U.S. duties to 50% from 10%.