Zaid Admani

Kava raised prices about 1.7% in 2025 and same stores traffic actually fell 1.4% in Q4.

So Kava has fewer customers coming in, but those customers are just paying more when they do come in.

So that could be a problem long-term.

We'll see how much Kava customers are willing to put up with the menu price increases, especially as other food places like McDonald's and Taco Bell are leaning harder into value.

Kava management doesn't seem to be too concerned though.

In fact, they're expecting same store sales growth of three to 5% in 2026.

They plan to open up to 76 new locations.

As a result, Kava stock is up more than 10% this morning at the time of this recording.

Now on the flip side, Lucid is having a rough morning after the EV maker widely missed earnings expectations in Q4.

Now their revenues did beat estimates coming in at $523 million, which was up double year over year.

But the bigger issue is production and profitability.

The number that stuck out to me was that Lucid burned through $2.7 billion in 2025, and they still have no timeline to reach profitability.

The company also just laid off 12% of its US salaried workforce to try to cut costs and improve their margins.

Now their balance sheet has about $4.6 billion of liquidity, so they're not gonna be going bankrupt anytime soon, but the clock is ticking.

The one bright spot for Lucid is their 2026 outlook.

Lucid is guiding for 25,000 to 27,000 vehicles this year, which would be a 40 to 50% jump from 2025.

The company says that their gravity SUV is expected to drive most of that growth.

But you know, investors aren't as optimistic.

Lucid shares are down more than 4% this morning at the time of this recording.

You know, I actually saw a Lucid driving through my neighborhood the other day.