Cava’s ‘consistently poor’ sanitation marks ‘leap out,’ contends Hunterbrook

Hunterbrook Media, which notes that based on its reporting Hunterbrook Capital is short Cava Group (CAVA) and long a basket of comparable securities including Sweetgreen (SG) and Shake Shack (SHAK) at the time of publication, reports that the Cava location on Wall Street received a “C” grade from the New York City Department of Health and adds that while “the doling out of restaurant sanitation grades can seem heavy-handed,” Cava’s “consistently poor marks leap out.” The cautious report adds: “18% of Cava’s 11 New York locations with a rating have a “C.” That’s over five times more than would be expected if the average Cava were as clean as the average restaurant. (Two Cava restaurants in Gotham have yet to be graded.) No other major fast food chain looked at by Hunterbrook comes close to Cava’s checkered sanitation record in New York City.” Since receiving these grades, Cava Group Inc. told Hunterbrook, the company has “brought in new leaders and added quality assurance resources, including a full-time team member dedicated solely to our restaurants in the Northeast,” adding that its most recent inspections have resulted in “A” grades. “We’re eagerly awaiting the next cycle of inspections.” The report added: “It’s not only Cava’s New York City locations that have raised food safety red flags. The FDA’s files on Cava, which Hunterbrook received through a Freedom of Information Act request, reveal a history of questionable food safety practices – though there is no indication in the documents that the facilities have ever been sanctioned or shut down by the agency.” In midday trading following the report, Cava shares are down about 2% to $120.97.