Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, June 16, 2023

Article Excerpt

CAVA GROUP INC., $38.15, symbol CAVA on New York, is a U.S. fast-casual restaurant chain specializing in Mediterranean-focused food. The chain has 263 restaurants in 22 states and Washington D.C. Cava was founded in 2006 and opened its first fast-casual location in 2011, modelling its build-your-own Mediterranean meals, focused on bowls and pitas, after the formula made popular by Chipotle Mexican Grill. Cava then expanded in 2018 when it acquired Zoe’s Kitchen, a rival Mediterranean chain, for $300 million. Over the past five years, it has been converting Zoe’s locations into Cava restaurants. It will convert the last eight locations by this fall. Washington, D.C.-based Cava first sold shares to the public at $22 each and began trading on the New York exchange on June 15, 2023. The final price was above the company’s initial proposed listing range of between $17 and $19. Notably, Cava is the first restaurant company to list its shares in an IPO since Sweetgreen (symbol SG on New York)…