Cava, the Mediterranean restaurant chain, saw its shares nearly double on its first day of trading, catapulting its market cap to almost $5 billion.
The company debuted on the New York Stock Exchange — with CEO Brett Schulman ringing the opening bell — at a value of $2.45 billion. Then, with 14 million shares sold, Cava had one of the strongest first days in an IPO market desperate for bright spots.
The chain, founded in 2006, offers Mediterranean dishes including falafel, gyro and shawarma-inspired bowls, along with pita sandwiches.
Cava shares opened at $22, and by Thursday’s close, they had soared to $43.78. That valuation is almost 10 times its revenue, a multiple even higher than fast-casual rival Chipotle.
Looking forward, investors will be watching other restaurant companies for similar opportunities. One is Panera Brands, which announced in May its intention to go public. Panera owns the chains Panera Bread, Einstein Bros. Bagels and Caribou Coffee.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel