Ups Price Range
The main underwriters of the offering are JP Morgan, Jefferies, and Citigroup. The company expects to list the stock on the New York Stock Exchange under the symbol CAVA. If everything goes as planned, the IPO would trigger more restaurant listings in the coming months and enable the company to become profitable.
Mediterranean Flavor
Established in 2006, CAVA Group is led by chief executive officer Brett Schulman, who is also one of the co-founders. It operates a chain of restaurants that offer Mediterranean flavors, serving customers through fast-casual restaurants and the company’s digital platform.
When it comes to expanding market share, CAVA Group will be competing with market leaders like Chipotle Mexican Grill. Currently, the company operates a total of 263 locations, compared to 22 restaurants in 2016. After the acquisition of Zoes Kitchen a few years ago, the company converted 145 Zoes locations into CAVA restaurants and opened 51 own restaurants during that period.
Revenue Rises
In fiscal 2021 and 2022, quarterly comparable restaurant sales increased steadily compared to the corresponding quarters in 2019, which is before the onset of the pandemic. In the sixteen weeks ended April 16, 2023, revenues increased to $203 million from $159 million in the same period of last year. Net loss narrowed sharply to $2.1 million or $1.30 per share from $20 million or $15.42 per share a year earlier.
In fiscal 2022, total revenues increased by 12% from the prior year to $564.1 million. However, net loss widened to $58.9 million from $37.4 million in fiscal 2021, mainly reflecting an increase in operating expenses.