Cava Group Inc has upped the ambitions for its initial public offering. The Mediterranean fast-casual restaurant chain is now targeting a valuation of $2.23 billion.
The company plans to sell approximately 14.44 million shares, which would raise $289 million. That compares to its previous target of $2.12 billion, which would price its stock between $17-$19 per share at the top of its range and would have raised $274.4 million last week.
The restaurant chain is expected to make its debut on the New York stock exchange Thursday under the ticker symbol CAVA.
Investors will be watching carefully, as a strong IPO could prompt other companies to jump into the fray. The IPO market has been slowly thawing this year, including big debuts from Kenvue and Acelyrin in May.
In terms of financials, Cava posted a net loss of $59 million in fiscal 2022, wider than its loss of $37.4 million in fiscal 2021.
Founded in 2006 by Ted Xenohristos, Ike Grigoropoulos, and Dimitri Moshovitis, CAVA Group started as a single restaurant in Rockville, Maryland. The company has since expanded its presence, operating 263 locations as of the first quarter of 2023. In 2018, CAVA Group acquired Zoe's Kitchen Inc for approximately $300 million, creating the largest operator in the Mediterranean restaurant category.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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