CAVA Rises 0.15% on Automation Bet as $240M Volume Ranks 422nd in Market Activity

On August 20, 2025, CAVA Group (CAVA) closed with a 0.15% gain, trading with a daily volume of $240 million, ranking 422nd in market activity. The stock's performance followed a strategic investment in automation technology and updated guidance on its expansion plans.

CAVA announced a $10 million investment in Hyphen, a foodservice automation platform, with an additional $5 million contingent. The deal aligns with the company's focus on enhancing operational efficiency through technology. CFO Tricia Tolivar emphasized that the automation would optimize back-of-house workflows, particularly in digital order fulfillment, while improving employee experiences. This follows Deloitte's survey showing 80% of restaurant executives plan to boost AI investments in the next fiscal year.

The chain reported Q2 revenue of $278.2 million, a 20.3% year-over-year increase, with digital sales accounting for 37% of total revenue. Same-store sales rose 2.1%, outperforming the industry's decline trend, though the company revised its same-store sales forecast to 4%-6%. CAVA also raised its 2025 new-unit target to 68-70 locations, up from 64-68, reaffirming its long-term goal of 1,000 units by 2032. Average unit volumes for Q2 reached $2.9 million, exceeding 2024 levels.

Analysts highlighted the strategic shift toward unit growth over same-store sales, noting significant whitespace in the casual dining sector. Tolivar cited strong AUV growth in both major cities and smaller markets like Lafayette, Louisiana, as a key indicator of the brand's scalability. The company remains in the testing phase for Hyphen's integration, with a planned rollout in the coming months.

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