Recent food-safety scares have cut into restaurants' traffic. Cava Group is no exception, but the Mediterranean fast-casual chain bounced back quickly thanks to its varied menu and a food-safety advisory council aimed at protecting its customers.
First came reports this summer of cyclosporiasis, a gastrointestinal food-borne illness. Federal health officials have linked one outbreak to shredded iceberg lettuce from a Mexican supplier for Taco Bell restaurants. And early this month, public-health authorities said they were investigating a salmonella outbreak associated with jalapeños served at certain restaurants.
Chains including Sweetgreen and Chipotle Mexican Grill have said food-safety challenges weighed on demand. At Cava, sales started to slip around the end of its quarter ended July 12 because of recent cyclospora outbreaks. However, as concerns about the parasite eased over the following weeks, sales recovered, returning to mid-single-digit growth by early August, finance chief Tricia Tolivar shared with me.
The chain hasn't seen impacts from the salmonella outbreak as of mid-August.
To mitigate risk, Cava relies on its advisory council made up of three food-safety experts. It meets regularly with Cava insiders to advise on topics such as how to safely add seafood to the menu, which is an allergen for some, Tolivar said.
While Cava chose not to launch an explicit campaign distancing itself from affected suppliers-the chain doesn't source leafy greens from Mexico or jalapeños from associated farms-employees were armed with that information to share with customers, the CFO said.
Cava's menu variety also didn't hurt. Guests worried about greens switched to grains and pitas for a period, Tolivar said. "The menu allowed consumers to feel good about the choices they were making and have flexibility if there were things that they were concerned about."
The Day Ahead
📆 Earnings
Dick's Sporting Goods
Intuit
📈 Economic Indicators
S&P Cotality releases its Case-Shiller National Home Price Index for June.
The Census Bureau reports new-home sales for July.
The Conference Board releases its monthly consumer sentiment reading for August.
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What Else Matters to CFOs
President Trump said the U.S. would impose 50% tariffs on automobiles and parts from Canada starting in January, the latest escalation in a tit-for-tat trade conflict that erupted over the weekend, Gavin Bade, Amanda Coletta and Paul Vieira report.
"On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," Trump said on Truth Social. U.S. tariffs on Canadian automobiles now stand at 25%, with discounts for the U.S. content in cars, while steel tariffs are at 50%.
The threat came after Canadian Prime Minister Mark Carney said his government would respond to a separate set of Trump's tariffs with levies on U.S. products. Trump imposed those new tariffs-effective on about 5% of Canadian exports to the U.S.-early on Saturday, after last-minute talks fell apart.
📰 Other headlines
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Wendy's CEO Aims for Chain to Get Back in the Burger Fight
WestJet Flight Attendants Ratify New Collective Agreement
UAW Workers Reject Deere's Contract Extension Offer, Setting Up 2027 Battle
FTC Reaches Settlement With Zillow, Redfin Over Antitrust Concerns
Exclusive: EV-Maker Polestar Says Trump Administration Strung It Along Before U.S. Ban
Zohran Mamdani Is Turning His Fire on Amazon
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Why Your Boss Wants to Make Sure AI Can Read Your Slack Messages
The Big Number
The Trump administration's new proposed fee for H-1B visas. The H-1B is a visa for high-skill foreign professionals that serves as the primary pathway for foreigners to work in the U.S. It has become a lightning rod on the right, as supporters of President Trump have alleged that employers use the visa to hire foreigners on lower salaries than similarly qualified Americans could expect to earn.
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CFO Moves
Hormel Foods, the Austin, Minn.-based maker of Spam lunch meat and Skippy peanut butter, named Ash Bhumbla as its next chief financial officer, effective Sept. 8. Bhumbla joins Hormel from Tyson, where he was senior vice president and chief financial officer for the chicken segment. He previously held finance and corporate development roles at Perdue Farms and International Flavors & Fragrances.
Paul Kuehneman, who has been interim CFO since last year, will work closely with Bhumbla and remain a senior leader within Hormel's finance organization, the company said. Bhumbla's appointment comes as Hormel prepares for its president John Ghingo to take on the additional post of chief executive, effective Oct. 26.
-Kelly Cloonan contributed to today's Ledger.
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