Mediterranean restaurant chain Cava (CAVA:NYSE) made an explosive stock market debut on 16 June in New York, pushing its valuation beyond $4 billion.

The company priced its IPO (initial public offering) at $22 per share, above the expected range of $19 to $20. The shares then started trading at more than double the IPO price at $40.83, extending to a high of $45.25 a few hours later.Cava in the long run is hoping to steal market share from US burrito chain Chipotle Mexican Grill (CMG:NYSE). It makes Greek-inspired dishes using hummus, pitta wraps, rice bowls, grains and salad.

Founded in 2006, the restaurant reinvented itself as a fast-food chain in 2011 and spread across the East and West coasts of America. In 2018, Cava bought Zoës Kitchen, a rival Mediterranean chain, for $300 million. As of 16 April 2023, Cava has 263 restaurants.

Cava raised $318 million of new money at the IPO to fund new sites and for general corporate purposes.

It achieved 52% compound annual growth in revenue between 2016 and 2022 but the company remains loss-making.

‹ Previous2023-06-22Next ›