• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Mediterranean restaurant chain Cava’s stock soars as much as 117% in market debut
Editor's Pick

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

by June 17, 2023
by June 17, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

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
You Might Also Like
  • Ticketmaster offers four tickets for $80 to selected shows amid summer concert slowdown
  • Top 3 benefits of IoT for healthcare providers
  • Starbucks moves to the next phase in its turnaround: Winning over employees
  • GM slows its EV plans again even as sales grow
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Top Rhode Island official out over work misconduct claims
next post
Economic Modern Family — Let’s Get Technical!

You may also like

Investor convicted in Trump Media insider trading case

May 10, 2024

What to know about travel safety as the Israel-Hamas war...

October 25, 2023

Inflation cooled to 6% in February as the Federal Reserve...

March 16, 2023

Do you buy packaged meat or bagged fruit from Walmart?...

April 9, 2024

Jaguar reveals glossy rebrand that features no cars and confuses...

November 20, 2024

LoRa Alliance’s® 2022 Annual Report Confirms Significant Expansion of LoRaWAN’s®...

February 13, 2023

Credit card delinquency rates hit a nearly 12-year high

July 24, 2024

Target is recalling 5 million scented candles because their glass...

May 22, 2023

Elon Musk’s X Corp. files notice in Alex Jones’ Infowars...

November 18, 2024

USDA documented insects and slime at Boar’s Head plants, records...

January 15, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


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

    Recent Posts

    • Nike pushes back Skims launch with Kim Kardashian due to production delays

      June 19, 2025
    • The Fed Is Getting It Wrong AGAIN As They Hold Rates Steady

      June 19, 2025
    • DOJ seizes record $225 million in crypto tied to global ‘pig butchering’ scams

      June 19, 2025
    • Feeling Unsure About the Stock Market’s Next Move? These Charts Can Help

      June 18, 2025
    • Amazon expects to cut corporate jobs as it relies more on AI

      June 18, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,599 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,874 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,578 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,541 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,416 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,140)
    • Investing (538)
    • Stock (2,620)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Nike pushes back Skims launch with Kim Kardashian due to...

      June 19, 2025
    • The Fed Is Getting It Wrong AGAIN As They Hold...

      June 19, 2025
    • DOJ seizes record $225 million in crypto tied to global...

      June 19, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,140)
    • Investing (538)
    • Stock (2,620)

    Disclaimer: RoundTableThoughts.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 © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Will schools finally pay student-athletes? What...

    May 25, 2024

    Why the United Auto Workers want...

    September 15, 2023

    How a single failure can take...

    July 20, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here