At what enterprise value was ZOE’S KITCHEN acquired in 2018?

You can find the full valuation details of ZOE’S KITCHEN on mynth capital. The transaction's Enterprise Value is estimated to be in the range of 300M - 700M USD. By registering for free, you get access to complete and exact transaction details including enterprise value, revenue, and EBITDA. Additionally, our database shows that the Retail & Consumer industry currently tracks an average EBITDA multiple of 11.0x, providing a valuable benchmark for this transaction.

What was the EV/EBITDA of ZOE’S KITCHEN when it was acquired by CAVA GROUP?

The estimated EV/EBITDA multiple for ZOE’S KITCHEN is in the range of 10x - 18x. For comparison, the Retail & Consumer sector currently shows an average EBITDA multiple of 11.0x. Join our community for free to access full valuation data and industry trends.

When was ZOE’S KITCHEN acquired by CAVA GROUP?

ZOE’S KITCHEN was acquired by CAVA GROUP in 2018.

What was the EBITDA of ZOE’S KITCHEN during the acquisition?

ZOE’S KITCHEN's EBITDA is estimated to be in the range of 10M - 30M USD. Join our community for free to access complete and exact deal data.

What is Enterprise Value (EV)?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.

What is the EV/EBITDA multiple and why is it used?

The EV/EBITDA multiple is a financial ratio that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It is widely used in M&A and valuation because it allows for comparisons between companies with different capital structures and provides a clear view of operational profitability.

How is the data for the ZOE’S KITCHEN acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the ZOE’S KITCHEN deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://cava.com/news/zoes-acquisition

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Home Database Retail & ConsumerZOE’S KITCHEN

08/2018

ZOE’S KITCHEN acquired by CAVA GROUP

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV 300M - 700M USD

Context

In a definitive move to consolidate the Mediterranean fast-casual segment, Cava Group has agreed to acquire Zoe’s Kitchen. The deal is structured as a public-to-private (P2P) acquisition. This merger will create a combined entity with 327 restaurants across 24 states, establishing the clear market leader in the category.The acquisition is being financed through a substantial equity investment led by Act III Holdings, the investment vehicle of Ron Shaich (founder of Panera Bread), with participation from The Invus Group and existing Cava investors. This transaction effectively serves as a strategic turnaround play; Cava intends to apply its superior digital infrastructure and innovation-led management style to the extensive physical footprint of Zoe’s Kitchen, which had recently struggled with declining same-store sales and net losses.

ZOE’S KITCHEN, which reported an EBITDA margin of LOGIN in 2017, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Retail & Consumer sector (11.0x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Zoe’s Kitchen Inc. is a prominent American fast-casual restaurant chain specializing in Mediterranean-inspired cuisine. Headquartered in Plano, Texas, the company operates a vast network of approximately 260 units across 20 states. Its menu focuses on fresh, "better-for-you" options including salads, pitas, and grilled entrees, catering to the growing consumer demand for healthy and convenient dining alternatives. Regarding its market positioning, Zoe’s Kitchen is a sector leader in the Mediterranean fast-casual category by unit count. Despite its significant physical footprint, the company recently faced operational headwinds, navigating a challenging environment marked by increased competition in delivery and discounting. Its business model is primarily based on company-owned restaurant operations, which allows for centralized quality control but exposes the firm to higher fixed-costs and margin sensitivity during periods of fluctuating same-store sales.

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REFERENCES

Valuation range: EV 300M - 700M USD

EBITDA range: 10M - 30M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ZOE’S KITCHEN by CAVA GROUP are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Acquirer: cava group