Cava, a Washington, DC-based Mediterranean restaurant, is looking to solicit investors for an IPO that could give the restaurant chain more than $2 billion in value.
According to a Securities and Exchange Commission (SEC) filing, Cava Group. said it will offer 14.44 million shares between $17 and $19 apiece.
The company also said in its filing that it plans to list on the New York Stock Exchange under the ticker symbol CAVA.
Cava group. has raised venture capital funding from firms such as Capital International Investors, Capital Research Global Investors and T. Rowe Price Investment Management, Inc.
Cava group. generated total revenues of $564.1 million in 2022, an increase of 12.8 percent over the previous year. According to SEC filings, the company reported a net loss of $59.4 million in 2022.
Cava, which opened its first restaurant in 2011, has expanded to 263 locations in 22 states. According to the Wall Street Journal, the restaurant chain also acquired competitor Zoe’s Kitchen in 2018 and converted those restaurants into cava locations to help with its expansion process.
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The restaurant chain said in its filing that it hopes to have more than 1,000 locations across the United States by 2032.
The move comes as 2022 was the weakest year for new U.S. IPO offerings in at least two decades, while 2023 is already proving to be a poor year in terms of funds raised from traditional IPOs.
Investors have been more interested in cash flow and earnings than growth lately, with well-known companies like Intel’s Mobileye and Johnson & Johnson’s Kenvue having the most successful IPOs, the Journal reported.
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