An individual walks previous a Cava eating place location in Pasadena, California, February 6, 2023.
Mario Tama | Getty Photographs
Mediterranean eating place chain Cava noticed its income upward push 12.8% in 2022, in step with regulatory filings launched Friday because it filed to head public thru an preliminary public providing.
It plans to business at the New York Inventory Trade the use of the ticker CAVA.
comparable making an investment information
Cava Crew used to be based in 2006 and opened its first fast-casual location in 2011, modeling its build-your-own Mediterranean foods after the system made preferred by way of Chipotle Mexican Grill. It bought Zoes Kitchen in 2018, taking the rival Mediterranean chain personal for $300 million.
Over the past 5 years, it is transformed Zoes’ footprint into new Cava places. The closing 8 Zoes eating places, which closed as of March, will open by way of q4 as Cava gadgets.
Final 12 months, the corporate’s web gross sales climbed to $564.1 million, 12.8% upper than the 12 months previous. For comparability, rival fast-casual chain Sweetgreen reported 2022 income of $470.1 million. The salad chain went public in November 2021 and has a marketplace worth of $1.06 billion.
However Cava’s regulatory filings confirmed it nonetheless isn’t winning. Its losses widened from $37.4 million in 2021 to $59 million in 2022.
Nonetheless, the corporate has confirmed indicators of having nearer to profitability. Its web loss throughout the 16 weeks finishing April 16 used to be simply $2.1 million, narrower than its web lack of $20 million throughout the year-ago duration. Its gross sales have additionally picked up, emerging 27.4% to $196.8 million in the similar time.
Cava’s same-store gross sales soared 28.4% within the first quarter. Its 3.7 million loyalty participants accounted for one-quarter of the ones gross sales, in step with the submitting.
The corporate has 263 places open as of April 16 and plans to open 34 to 44 new gadgets by way of the tip of the 12 months. Greater than 80% of Cava’s places are in suburban spaces. It anticipates it will have as many as 1,000 U.S. places by way of 2032 because it branches out into new areas such because the Midwest.
Very similar to fellow fast-casual chains Chipotle and Sweetgreen, Cava has been leaning into drive-thru pickup lanes for virtual orders.
Cava’s marketplace debut would ruin the lengthy drought of eating place IPOs, which started closing 12 months because the struggle in Ukraine, inflation and emerging rates of interest resulted in rocky marketplace stipulations. Even outdoor the eating place trade, firms as soon as keen to head public, akin to Reddit and Not possible Meals, have held again, even if J&J’s Kenvue by-product used to be a hit.
However buyers may have an urge for food for Cava inventory regardless of issues a couple of attainable recession this 12 months hitting eating place call for. Sweetgreen’s stocks have risen 10% this 12 months, whilst Chipotle’s have climbed a whopping 51% throughout the similar time.