Renaissance Capital logo

Fast-casual Mediterranean restaurant chain CAVA Group prices IPO at $22, above the upwardly revised range

June 14, 2023

CAVA Group, a fast-casual Mediterranean restaurant chain with over 260 locations across the US, raised $318 million by offering 14.4 million shares at $22, above the upwardly revised range of $19 to $20.

CAVA believes it has established itself as the only national player at scale in the fast-growing Mediterranean category, with more than twice the number of restaurants compared to its next largest competitor in the category. The company owned and operated 263 CAVA restaurants across 22 states and Washington, DC as of April 16, 2023, including the conversion of 145 Zoes Kitchen locations (2018 acquisition). It anticipates having 34 to 44 net new restaurant openings through the end of 2023, including 8 remaining Zoes Kitchen conversions. CAVA's average unit volume was $2.5 million in the 1Q23, up from $2.4 million in the prior-year period, and its restaurant-level profit margin was 25.4%, up from 17.5%.

CAVA Group plans to list on the NYSE under the symbol CAVA. J.P. Morgan, Jefferies, Citi, Morgan Stanley, and Piper Sandler acted as joint bookrunners on the deal.