Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

Mediterranean restaurant chain Cava’s stock soars as much as 117% in market debut

by June 17, 2023
June 17, 2023
Mediterranean restaurant chain Cava’s stock soars as much as 117% in market debut

Shares of Mediterranean restaurant chain Cava soared as much as 117% in its market debut Thursday.

The company’s stock closed at $43.78 per share, up from its opening trade of $42 per share. Its closing price gives it a market value of $4.88 billion and makes it the top-performing IPO this year for companies valued above $500 million.

Cava Group priced its IPO at $22 per share on Wednesday, above the expected range of $19 to $20. The company sold 14.4 million shares, raising nearly $318 million and initially valuing the restaurant chain at roughly $2.45 billion.

The stock trades on the New York Stock Exchange under the ticker symbol “CAVA.”

Although it was founded in 2006, Cava opened its first fast-casual location in 2011, modeling its build-your-own Mediterranean meals after the formula made popular by Chipotle Mexican Grill. The chain built a customer base by introducing some eaters to ingredients like harissa and tahini and positioning itself as a healthy and convenient option. The company also sells its dips, spreads and salad dressings in grocery stores.

Cava acquired Zoes Kitchen in 2018, taking the rival Mediterranean chain private for $300 million. It’s spent the last five years converting Zoes Kitchen locations into Cava restaurants, contributing to its footprint of 263 locations as of April 16.

Last year, Cava’s net sales climbed to $564.1 million, 12.8% higher than the year earlier.

“You’re seeing the inflection point in the business, and all of that robust structure we’ve invested in, the restaurant growth, starting to take hold and drive tailwinds to the business,” CEO Brett Schulman said on CNBC’s “Squawk on the Street.”

But its losses also widened from $37.4 million in 2021 to $59 million in 2022. Still, industry experts say that the chain has demonstrated a clear path to profitability, making it more attractive for investors looking for growth stocks. In the first quarter, it reported a net loss of $2.1 million, narrower than its $20 million net loss in the year-ago period.

The restaurant company plans to use the proceeds from its IPO for new location openings and general corporate purposes.

More from CNBC

Microsoft’s stock hits record after executives predict $10 billion in annual AI revenue Disney finance chief Christine McCarthy to step down Disney looks to get out of animation rut with Pixar’s ‘Elemental’

Cava adds to the growing number of publicly traded fast-casual chains. Sector leader Chipotle made its public market debut back in 2006 and has seen its market value grow to $56.9 billion.

More recently, salad chain Sweetgreen went public in November 2021. It now has a market value of $1.2 billion. Investors have dinged the stock for the company’s lack of profit, although shares have climbed more than 25% this year.

Cava’s debut could inspire other restaurant chains to follow its lead, helping to snap the IPO market’s drought. Brazilian steakhouse Fogo De Chao and Korean barbecue chain Gen Restaurant Group have both filed regulatory paperwork confidentially, while both Panera Bread and Fat Brands’ Twin Peaks have shared an intent to issue an initial public offering in the near future.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Week Ahead: NIFTY Travels A Weak Rally; Stay Cautious Of These Things
next post
Judge blocks Indiana ban on hormone treatments, puberty blockers for minors

Related Posts

PepsiCo buys prebiotic soda brand Poppi for nearly...

March 18, 2025

Wells Fargo customers scramble after deposits disappear from...

August 5, 2023

More than $1 billion in federal tax refunds...

April 2, 2024

Hasbro says it’s taking steps to offset China...

February 22, 2025

McDonald’s aims to open nearly 9,000 restaurants, add...

December 7, 2023

USDA documented insects and slime at Boar’s Head...

January 16, 2025

Elon Musk and Sam Altman spar over Trump’s...

January 25, 2025

Popeyes is adding wings to its menu permanently

November 24, 2023

Mortgage rates are expected to fall below 6%...

January 19, 2024

Meta approves plan for bigger executive bonuses following...

February 22, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Run Your Stock Portfolio Like a Pro Sports Team

    • Leadership Rotation Could Confirm Corrective Phase

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

    • 1911 Gold Temporarily Suspends Operations at True North Complex due to Bissett Evacuation Order

    • Ontario Backs Down on Key Bill 5 Provisions, Echoes BC’s Mining Debate

    • Appeals Court Grants Trump Temporary Reprieve on Tariffs, “TACO” Taunts Gain Steam

    Categories

    • Business (1,223)
    • Investing (2,503)
    • Politics (3,699)
    • Stocks (1,614)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved