Mediterranean restaurant chain Cava's stock soars as much as 117% in market debut

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Mediterranean restaurant chain Cava is thriving in its market debut. Its stock closing price gives it a market value of $4.88 billion and makes it the top-performing IPO this year for companies valued above $500 million. - CNBC

its IPO at $22 per share on Wednesday, above the expected range of $19 to $20. The company sold 14.4 million shares, raising nearly $318 million and initially valuing the restaurant chain at roughly $2.45 billion.Although it was founded in 2006, Cava opened its first fast-casual location in 2011, modeling its build-your-own Mediterranean meals after the formula made popular by

. The chain built a customer base by introducing some eaters to ingredients like harissa and tahini and positioning itself as a healthy and convenient option. The company also sells its dips, spreads and salad dressings in grocery stores.in 2018, taking the rival Mediterranean chain private for $300 million. It’s spent the last five years converting Zoes Kitchen locations into Cava restaurants, contributing to its footprint of 263 locations as of April 16.

The restaurant company plans to use the proceeds from its IPO for new location openings and general corporate purposes.

 

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Mediterranean restaurant chain Cava stock soars as much as 107% in market debutThe parent company of Mediterranean restaurant chain Cava started trading on the New York Stock Exchange.
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