Cava Files for IPO Following a Rise in Revenue

The Mediterranean restaurant chain Cava experienced a 12.8% rise in revenue in 2022 according to regulatory filings and has plans to trade on the New York Stock Exchange using the ticker CAVA.

Cava specializes in build-your-own Mediterranean meals and “fast-casual” dining. The company was founded in 2006 with the first location opening in 2011. And, according to CNBC, Cava took its rival, Zoes Kitchen, private in a $300 million acquisition in 2018. “Over the last five years, it’s converted Zoes’ footprint into new Cava locations. The last eight Zoes restaurants, which closed as of March, will open by this fall as Cava units.”

Although the company’s regulatory filings showed it is still not profitable as its losses widened from $37.4 million in 2021 to $59 million in 2022, it appears to be getting closer to profitability. “Its net loss during the 16 weeks ending April 16 was just $2.1 million, narrower than its net loss of $20 million during the year-ago period. Its sales have also picked up, rising 27.4% to $196.8 million in the same time,” per CNBC.

Cava has 263 locations as of April 16 and plans to add 34 to 44 more locations by the end of the year. The chain has also been embracing drive-thru pick-up lines for digital orders, much like other fast-casual establishments.