Executive Briefing
Cava gets it done with a big IPO
For all the decades of excitement around Chipotle-for-x concepts, few have made it this far.
By Dan Frommer on Friday, June 16, 2023 at 8:00 am
Cava, the Mediterranean-style fast-casual restaurant chain, successfully went public yesterday. For all the decades of excitement around Chipotle-for-x concepts, few have made it this far.
The important thing is that despite of (or perhaps thanks in part to) the relative scarcity of IPOs this year, it was able to raise $318 million in its offering — cash it needs right now to run its business and continue growing.
Shares more than doubled in early trading, which raises the familiar critique that Cava could have raised the money even more efficiently by pricing its shares higher, with the tradeoff of perhaps fewer “positive” headlines that it’s getting from the stock pop.
What actually matters for the long game as a public company is consistency and predictability — so we’ll see how that looks over the next year or so.
The New Consumer Executive Briefing is exclusive to members — join now to unlock this 1,500-word post and the entire archive. Subscribers should sign in here to continue reading.
Hi, I’m Dan Frommer and this is The New Consumer, a publication about how and why people spend their time and money.
I’m a longtime tech and business journalist, and I’m excited to focus my attention on how technology continues to profoundly change how things are created, experienced, bought, and sold. The New Consumer is supported by your membership — join now to receive my reporting, analysis, and commentary directly in your inbox, via my member-exclusive newsletter. Thanks in advance.