A logo outside a Cava restaurant location in Chantilly, Virginia.
Christopher Tripplar | Sipa USA | AP
Mediterranean Series Cava announced monday It has filed confidentially for an initial public offering.
It is the first restaurant company so far this year to take its first steps toward a public market debut in 2022 after an IPO drought.
Cava Group was founded in 2006 and opened its first fast-casual location in 2011, creating its own Mediterranean cuisine after being popularized by its formula. Chipotle Mexican Grill, In 2018, it bought Zoes Kitchen for $300 million, taking the chain private. The company is expanding its footprint by converting Zoes locations into new Kava restaurants.
Cava also sells its dips and spreads, such as spicy hummus, tzatziki, and tahini dressing, at Whole Foods and other grocery stores.
According to data from PitchBook, the company raised $230 million in April 2021 at a valuation of $1.71 billion.
Kava said on Monday that the offering is subject to market conditions and other factors. Last year, war in ukraineDue to rising inflation and recession fears, many companies canceled their plans to go public. was among them panera breadWhich was founded by Kava investor and chairman Ron Shacht.
Investors have had mixed reactions to fast-casual restaurant chains over the past year. Chipotle’s stock soared 13% as price hikes boosted sales, but the salad chain sweet green Its shares have lost more than half their value on concerns about its path to profitability.
Kava CEO Brett Schulman told CNBC In 2019 that company was profitable at the time, which could make the offering more attractive to potential shareholders.