Restaurant chain Cava Group Inc. delivered one of the largest first-day gains in the past two years after nearly doubling its trading debut. It exceeded the target for its initial public offering by raising $318M. Cava's shares closed Thursday at $43.78, a 99% gain from the IPO price of $22 per share. - The company sold 14 million shares after marketing them for $19 to $20, a range it had elevated earlier.
- Analysts aren't sure that it will last, though, as they are comparing Cava to Portillo's Inc. and Sweetgreen Inc., two other restaurants that saw initial pops in trading debuts before eventually cooling over time.
- Still, the fast-casual Mediterranean restaurant's IPO is the sixth-largest of 2023.
- "The market's always welcoming and ready for long-term sustainable growth stories, especially ones that are category-defining brand," Cava Chief Executive Officer Brett Schulman said in an interview. "That's what we're trying to do in the Mediterranean cultural cuisine category that we've established a clear dominant leadership position in."
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