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Cava CFO: Automation to ‘enhance the human experience, not replace it’

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Good morning. As automation gains momentum in the food service industry, Mediterranean restaurant chain Cava—known for fan favorites like pita chips—is making its first major investment in the space.

Cava has invested $5 million in Hyphen—a foodservice platform that automates culinary operations such as meal production at assembly stations—and committed an additional $5 million, subject to terms. The $25 million funding round was also backed by Chipotle’s Cultivate Next venture fund, which previously invested $15 million in July 2024.

“We believe that technology should enhance the human experience, not replace it, and Hyphen’s equipment does just that,” Cava CFO Tricia Tolivar told me. After months of evaluating Hyphen and similar concepts, the company is confident this partnership is a smart move, she added.

Deloitte’s recent “State of AI in Restaurants” survey—based on interviews with 375 restaurant executives across 11 countries—found that 8 in 10 expect to increase their AI investments in the next fiscal year. Casual dining brands, in particular, prioritize benefits such as optimizing food preparation.

At Cava, Hyphen will be used on what Tolivar calls the “second-make line”—a back-of-house station where staff prepare all bowls and pitas for digital delivery and pickup. The system lets employees assemble a bowl or pita on the top level while automatically producing additional bowls below from the same ingredients, boosting speed, throughput, and digital order accuracy, she said. “Most importantly, it’s really about making our team members’ lives easier,” Tolivar said. Cava is still testing the technology and expects to roll it out in a few months.

‘Whitespace opportunity’

For its fiscal second quarter ended July 13, Cava reported on Tuesday revenue of $278.2 million, up 20.3% year over year. About 37% of sales were digital. Same-restaurant sales rose 2.1%, below analyst estimates, but the company outperformed the broader industry trend of same-store declines. Cava lowered its same-store sales forecast to 4%–6%, down from 6%–8%, while maintaining expectations for restaurant-level profit margins of 24.8%–25.2% and adjusted EBITDA of $152 million–$159 million.

The company added 16 net new restaurants in the quarter, bringing its total to 398—a 16.7% increase from last year. Cava raised its 2025 net new openings forecast to 68–70, up from 64–68, and continues to target 1,000 locations by 2032.

Alex Fascino, an equity analyst at CFRA Research, commented on Cava’s expansion plans in a Tuesday research note. “In our view, this strategic pivot toward prioritizing expansion over same-store sales growth validates the substantial whitespace opportunity and unit growth potential in the current market backdrop,” he wrote.

Cava’s 2025 new-restaurant class is on track to deliver average unit volumes (AUVs) above $3 million, ahead of expectations. Overall AUV for Q2 2025 was $2.9 million, up from $2.7 million a year earlier. 

The AUV or average sales for each location is increasing across the country, Tolivar said. “Not only are you seeing it in Detroit, Indianapolis, and Chicago, but in smaller cities like Lafayette, Louisiana or Burlington, North Carolina.”  

Tolivar also revealed a new flavor of the Cava’s popular pita chips—cinnamon sugar served with a side of honey. 

“One of the best parts about being in the office is spending time with our chefs in the kitchen,” she said. “I’ve been part of this journey and the evolution, and I think they’ve nailed it.”

Sheryl Estrada
sheryl.estrada@fortune.com

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Fortune 500 Power Moves

Aunoy Banerjee was appointed EVP and CFO of Citizens Financial Group, Inc. (No. 341), effective Oct. 24. As previously announced, current CFO John Woods will depart the bank on Aug. 15. Chris Emerson, EVP and head of corporate planning and enterprise finance, will serve as CFO during the interim period.  Banerjee joins Citizens from Barclays, where he currently serves as CFO of Barclays Bank PLC, leading a multifunctional team.  Before Barclays, Banerjee served in finance and transformation roles at State Street over eight years, most recently as head of investments and third-party management and chair of State Street India. He also served as chief transformation officer.  Banerjee previously spent 11 years at Citi in several roles, including business unit CFO for Capital Markets and Securities Services.

Every Friday morning, the weekly Fortune 500 Power Moves column tracks Fortune 500 company C-suite shiftssee the most recent edition.

More notable moves

 Aric McKinnis was promoted to SVP and CFO of FormFactor, Inc. (Nasdaq: FORM). McKinnis succeeds Shai Shahar, who resigned from these positions effective Aug. 8. Shahar will serve as an executive advisor through Dec. 31. McKinnis, who joined FormFactor in August 2019, serves as its VP and corporate controller and was previously corporate controller at MKS Instruments. Earlier, he served in various external audit roles at Deloitte, including audit manager

David Hedley was appointed CFO of Bramshill Investments, an alternative asset management firm. Hedley has been working as the firm’s chief strategy officer since 2021. He replaces the firm’s former CFO, Gina Cifello, who retired earlier this year. Hedley has over 34 years of experience. Before joining Bramshill, he was a principal and senior managing director at Ernst & Young Capital Advisors, where he led the Technology Investment Banking Group. Prior to EY, he was a senior investment banker at Canaccord Genuity, UBS Investment Bank, Thomas Weisel Partners and Merrill Lynch. 

Big Deal

According to July inflation data, the Consumer Price Index (CPI) rose 0.2% month over month, and 2.7% year over year—matching June’s annual pace. Core inflation, which excludes food and energy, edged higher to 3.1% annually, remaining well above the Federal Reserve’s 2% target. Flat headline inflation and declining energy prices fueled expectations for a potential rate cut in September. However, analysts cautioned that persistent service-sector costs and possible future tariff impacts could limit further easing in 2025. While markets rallied on the data, Fed officials indicated they remain focused on upcoming jobs reports before making decisions on additional cuts, Fortune reported

Going deeper

“Is AI Pushing Us to Break the Talent Pipeline?” is a new report in Wharton’s business journal. Junior employees may be losing opportunities to develop their skills as more companies rely on AI for entry-level tasks, Wharton’s Cornelia Walther argues.

 

“Businesses of all sizes should invest in ‘double literacy’ for their employees, and themselves,” Walther writes. “Beyond AI literacy, this is the time to develop a solid understanding of our human skillset, and how it is impacted by the growing artificial treasure chest.”

Overheard

“I disdain corporate speak and owe more than the standard ‘I want to spend more time with my family and Lauren is a great visionary product-centric strategic operator.'”

—Life360 co-founder Chris Hulls wrote in a sign-off blog post. Hulls ignored legal advice and the boilerplate, “I want to spend more time with my family,” in an announcement about why he’s leaving the CEO role, Fortune reported



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Trump slams Democratic congressman as disloyal for not switching parties after pardon

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Trump blasted Cuellar for “Such a lack of LOYALTY,” suggesting the Republican president might have expected the clemency to bolster the GOP’s narrow House majority heading into the 2026 midterm elections.

Cuellar, in a television interview Sunday after Trump’s social media post, said he was a conservative Democrat willing to work with the administration “to see where we can find common ground.” The congressman said he had prayed for the president and the presidency at church that morning “because if the president succeeds, the country succeeds.”

Citing a fellow Texas politician, the late President Lyndon Johnson, Cuellar said he was an American, Texan and Democrat, in that order. “I think anybody that puts party before their country is doing a disservice to their country,” he told Fox News Channel’s “Sunday Morning Futures.”

Trump noted on his Truth Social platform that the Democratic President Joe Biden’s administration had brought the charges against Cuellar and that the congressman, by running once more as a Democrat, was continuing to work with “the same RADICAL LEFT” that wanted him and his wife in prison — “And probably still do!”

“Such a lack of LOYALTY, something that Texas Voters, and Henry’s daughters, will not like. Oh’ well, next time, no more Mr. Nice guy!” Trump said. Cuellar’s two daughters, Christina and Catherine, had sent Trump a letter in November asking that he pardon their parents.

Trump explained his pardon he announced Wednesday as a matter of stopping a “weaponized” prosecution. Cuellar was an outspoken critic of Biden’s immigration policy, a position that Trump saw as a key alignment with the lawmaker.

Cuellar said he has good relationships within his party. “I think the general Democrat Caucus and I, we get along. But they know that I’m an independent voice,” he said.

A party switch would have been an unexpected bonus for Republicans after the GOP-run Legislature redrew the state’s congressional districts this year at Trump’s behest. The Texas maneuver started a mid-decade gerrymandering scramble playing out across multiple states. Trump is trying to defend Republicans’ House majority and avoid a repeat of his first term, when Democrats dominated the House midterms and used a new majority to stymie the administration, launch investigations and twice impeach Trump.

Yet Cuellar’s South Texas district, which includes parts of metro San Antonio, was not one of the Democratic districts that Republicans changed substantially, and Cuellar believes he remains well-positioned to win reelection.

Federal authorities had charged Cuellar and his wife with accepting thousands of dollars in exchange for the congressman advancing the interests of an Azerbaijan-controlled energy company and a bank in Mexico. Cuellar was accused of agreeing to influence legislation favorable to Azerbaijan and deliver a pro-Azerbaijan speech on the floor of the U.S. House.

Cuellar has said he his wife were innocent. The couple’s trial had been set to begin in April.

In the Fox interview, Cuellar insisted that federal authorities tried to entrap him with “a sting operation to try to bribe me, and that failed.”

Cuellar still faces a House Ethics Committee investigation.



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Jerome Powell faces a credibility issue as he tries to satisfy hawks and doves on a divided Fed

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With the Federal Reserve split between increasingly hawkish and increasingly dovish policymakers, Chairman Jerome Powell is due to perform some serious log-rolling when the central bank meets this week.

Another rate cut is a near certainty after the Fed meeting ends on Wednesday, but the main question is what Powell will say about the prospects for more easing next month.

Wall Street expects a hawkish cut, meaning Powell is likely to avoid signaling a January cut to appease Fed hawks, after joining doves to lower rates this month.

“Chair Powell is facing the most divided committee in recent memory,” analysts at Bank of America said in a note on Friday. “Therefore, we think he will attempt to balance the expected rate cut with a hawkish stance at the press conference, just as he did in October.”

But at the same time, the Fed chief has also been insistent that policymakers are not on a pre-determined course and that rate moves depend on the data that come in.

As a result, BofA is doubtful that he can pull off a hawkish cut so easily, considering all the market-moving data that will come out between the two meetings, with some delayed due to the government shutdown.

The week after the Fed meeting, for example, jobs numbers for October and November, October retail sales, and the consumer price index for November will come out. And December readings for those indicators are likely to be released before the next meeting on Jan. 27-28.

“It will be difficult for Powell to send a credibly hawkish signal at the press conference,” analyst said.

BofA still sees a way for him to thread the needle. One option is for Powell to suggest that “significant further weakening” in the jobs data will be necessary to trigger a January cut.

Another option is to argue that 3.5%-3.75%—where benchmark rates would be if the Fed cuts again this week—isn’t restrictive after accounting for inflation, meaning the central bank is no longer weighing on the economy as much.

Similarly, JPMorgan chief U.S. economist Michael Feroli said he expects Powell to stress that after this week’s cut, rates will be close to neutral. So any additional easing would depend on meaningful deterioration in the labor market and not be predicated in risk management.

For now, Wall Street doesn’t expect a January cut, with 25% odds currently being priced in on CME Group’s FedWatch tool. But BofA thinks Powell will likely leave the door open for one.

“We wouldn’t be surprised if markets start pushing more aggressively for a Jan cut in the near term,” analysts predicted. “And the anticipation of this outcome might raise the probability of more dissents in Dec, since hawks might be inclined to dig their heels in instead of compromising.”



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US vaccine advisers end decades-long recommendation for all babies to get hepatitis B shot at birth

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A federal vaccine advisory committee voted on Friday to end the longstanding recommendation that all U.S. babies get the hepatitis B vaccine on the day they’re born.

A loud chorus of medical and public health leaders decried the actions of the panel, whose current members were all appointed by U.S. Health Secretary Robert F. Kennedy Jr. — a leading anti-vaccine activist before this year becoming the nation’s top health official.

“This is the group that can’t shoot straight,” said Dr. William Schaffner, a Vanderbilt University vaccine expert who for decades has been involved with the Advisory Committee on Immunization Practices and its workgroups.

Several medical societies and state health departments said they would continue to recommend them. While people may have to check their policies, the trade group AHIP, formerly known as America’s Health Insurance Plans, said its members still will cover the birth dose of the hepatitis B vaccine.

For decades, the government has advised that all babies be vaccinated against the liver infection right after birth. The shots are widely considered to be a public health success for preventing thousands of illnesses.

But Kennedy’s advisory committee decided to recommend the birth dose only for babies whose mothers test positive, and in cases where the mom wasn’t tested.

For other babies, it will be up to the parents and their doctors to decide if a birth dose is appropriate. The committee voted 8-3 to suggest that when a family elects to wait, then the vaccination series should begin when the child is 2 months old.

President Donald Trump posted a message late Friday calling the vote a “very good decision.”

The acting director of the Centers for Disease Control and Prevention, Jim O’Neill, is expected to decide later whether to accept the committee’s recommendation.

The decision marks a return to a health strategy abandoned more than three decades ago

Asked why the newly-appointed committee moved quickly to reexamine the recommendation, committee member Vicky Pebsworth on Thursday cited “pressure from stakeholder groups,” without naming them.

Committee members said the risk of infection for most babies is very low and that earlier research that found the shots were safe for infants was inadequate.

They also worried that in many cases, doctors and nurses don’t have full conversations with parents about the pros and cons of the birth-dose vaccination.

The committee members voiced interest in hearing the input from public health and medical professionals, but chose to ignore the experts’ repeated pleas to leave the recommendations alone.

The committee gives advice to the director of the Centers for Disease Control and Prevention on how approved vaccines should be used. CDC directors almost always adopted the committee’s recommendations, which were widely heeded by doctors and guide vaccination programs. But the agency currently has no director, leaving acting director O’Neill to decide.

In June, Kennedy fired the entire 17-member panel earlier this year and replaced it with a group that includes several anti-vaccine voices.

Hepatitis B and delaying birth doses

Hepatitis B is a serious liver infection that, for most people, lasts less than six months. But for some, especially infants and children, it can become a long-lasting problem that can lead to liver failure, liver cancer and scarring called cirrhosis.

In adults, the virus is spread through sex or through sharing needles during injection drug use. But it can also be passed from an infected mother to a baby.

In 1991, the committee recommended an initial dose of hepatitis B vaccine at birth. Experts say quick immunization is crucial to prevent infection from taking root. And, indeed, cases in children have plummeted.

Still, several members of Kennedy’s committee voiced discomfort with vaccinating all newborns. They argued that past safety studies of the vaccine in newborns were limited and it’s possible that larger, long-term studies could uncover a problem with the birth dose.

But two members said they saw no documented evidence of harm from the birth doses and suggested concern was based on speculation.

Three panel members asked about the scientific basis for saying that the first dose could be delayed for two months for many babies.

“This is unconscionable,” said committee member Dr. Joseph Hibbeln, who repeatedly voiced opposition to the proposal during the sometimes-heated two-day meeting.

The committee’s chair, Dr. Kirk Milhoan, said two months was chosen as a point where infants had matured beyond the neonatal stage. Hibbeln countered that there was no data presented that two months is an appropriate cut-off.

Dr. Cody Meissner also questioned a second proposal — which passed 6-4 — that said parents consider talking to pediatricians about blood tests meant to measure whether hep B shots have created protective antibodies.

Such testing is not standard pediatric practice after vaccination. Proponents said it could be a new way to see if fewer shots are adequate.

A CDC hepatitis expert, Adam Langer, said results could vary from child to child and would be an erratic way to assess if fewer doses work. He also noted there’s no good evidence that three shots pose harm to kids.

Meissner attacked the proposal, saying the language “is kind of making things up.”

Health experts say this could ‘make America sicker’

Health experts have noted Kennedy’s hand-picked committee is focused on the pros and cons of shots for the individual getting vaccinated, and has turned away from seeing vaccinations as a way to stop the spread of preventable diseases among the public.

The second proposal “is right at the center of this paradox,” said committee member Dr. Robert Malone.

Some observers criticized the meeting, noting recent changes in how they are conducted. CDC scientists no longer present vaccine safety and effectiveness data to the committee. Instead, people who have been prominent voices in anti-vaccine circles were given those slots.

The committee “is no longer a legitimate scientific body,” said Elizabeth Jacobs, a member of Defend Public Health, an advocacy group of researchers and others that has opposed Trump administration health policies. She described the meeting this week as “an epidemiological crime scene.”

Republican Sen. Bill Cassidy, a liver doctor who chairs the Senate health committee, called the committee’s vote on the hepatitis B vaccine “a mistake.”

“This makes America sicker,” he said, in a post on social media.

The committee heard a 90-minute presentation from Aaron Siri, a lawyer who has worked with Kennedy on vaccine litigation. He ended by saying that he believes there should no ACIP vaccine recommendations at all.

In a lengthy response, Meissner said, “What you have said is a terrible, terrible distortion of all the facts.” He ended by saying Siri should not have been invited.

The meeting’s organizers said they invited Siri as well as a few vaccine researchers — who have been vocal defenders of immunizations — to discuss the vaccine schedule. They named two: Dr. Peter Hotez, who said he declined, and Dr. Paul Offit, who said he didn’t remember being asked but would have declined anyway.

Hotez, of the Texas Children’s Hospital in Houston, declined to present before the group “because ACIP appears to have shifted its mission away from science and evidence-based medicine,” he said in an email to The Associated Press.



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