Shares of Mediterranean restaurant chain Cava (NYSE:CAVA) soared as much as 117% in its market debut Thursday.
The company’s stock closed at $43.78 per share, up from its opening trade of $42 per share. Its 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.
Cava Group priced 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 Chipotle Mexican Grill. 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.
Cava acquired Zoes Kitchen 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.
Last year, Cava’s net sales climbed to $564.1 million, 12.8% higher than the year earlier.
CAVA opened Friday up 82 cents, or 1.9%, to $44.60.
